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Equitable Bank Announces Intention to Develop a Covered Bond Program
Equitable Bank Announces Intention to Develop a Covered Bond Program Canada NewsWi...
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[{"type":"text","content":"\n\n\n\nEquitable Bank Announces Intention to Develop a Covered Bond Program\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, Aug. 21, 2019\n\n\n\nTORONTO, Aug. 21, 2019 /CNW/ - Equitable Group Inc. (TSX: EQB and EQB.PR.C) (\"Equitable\" or the \"Company\") today announced that it has selected Barclays Bank PLC (\"Barclays\") and TD Securities (\"TD\") to assist the Company's subsidiary, Equitable Bank, with developing a covered bond funding program.\n\n \n \n\n \nManagement's goal is to launch the program as early as 2020, subject to regulatory approval of its program and market conditions. Assuming success with this timetable, Equitable would likely become the first mid-sized Canadian bank to launch a covered bond program.  \n\"As Canada's Challenger BankTM, we believe the development of a covered bond program by a mid-sized bank is a natural fit with our ethos of bringing innovation to the marketplace,\" said Andrew Moor, President and CEO of Equitable Bank. \"For our Bank, covered bonds have the potential to reduce our funding costs and be a meaningful source of additional funding diversification. Our choice to work with Barclays and TD demonstrates our commitment to the success of this initiative. Together, these institutions have exceptional global covered bond structuring and distribution capabilities. With their support, we are confident of designing an effective program.\"\nCovered bonds issued by Canadian banks are governed by a legislative framework administered by the Canada Mortgage and Housing Corporation. They are a significant source of funding for Canadian uninsured single-family residential mortgages, with large financial institutions having approximately $Cdn158 billion of covered bonds outstanding.  They are also a longstanding source of mortgage funding internationally and there are almost Cdn$4 trillion of covered bonds outstanding globally today. \nABOUT EQUITABLE GROUP INC.                     ...