EQB Inc. to Issue C$200 Million in Limited Recourse Capital Notes

EQB Inc., a Canadian bank holding company, is preparing to strengthen its capital position through the issuance of approximately C$200 million (roughly $146 million) in limited recourse capital notes. The offering is expected to be launched as early as Monday. These securities function as Additional Tier 1 (AT1) capital, which financial institutions utilize to meet regulatory capital requirements and provide a loss-absorbing buffer. The notes feature a 60-year final maturity, although the company maintains the option to buy back the securities after five and a half years. According to sources familiar with the matter, initial pricing discussions have placed the yield at approximately 3.75 percentage points above government debt. This pricing reflects the risk profile of the limited recourse structure typical of AT1 instruments. This capital raise allows EQB to optimize its balance sheet and ensure continued regulatory compliance. While the issuance is a standard corporate finance action, the final pricing will serve as a benchmark for similar mid-tier Canadian financial institutions seeking to raise capital in the current interest rate environment.