TORONTO--(BUSINESS WIRE)--Home Capital Group Inc. (“Home Capital”) (TSX: HCG) and its subsidiary Home Trust Company, (“Home Trust” or “the Company”) announce the closing of a successful offering of two-year $200 million fixed-rate deposit notes (the “Notes”).
This deposit note issuance marks Home Trust’s first issuance of deposit notes since 2015. The Notes bear an interest rate of 5.317% which represented a spread of 225 basis points over comparable term Government of Canada Bonds and have a maturity date of June 13, 2024.
“We are pleased with investor response to our return to the deposit note market despite a volatile market backdrop,” stated Brad Kotush, Executive Vice President and Chief Financial Officer at Home Capital. “The 26 investors in the book led to an oversubscription of 1.8 times and give us confidence in our ability to utilize deposit notes as an element of our funding diversification strategy.”
BMO Capital Markets and RBC Capital Markets acted as joint leads and bookrunners for the offering together with a broad syndicate of leading financial institutions. The Notes will rank equally and ratably with all present and future unsecured and unsubordinated liabilities of Home Trust and are not covered by CDIC insurance.
About Home Capital: Home Capital Group Inc. is a public company, traded on the Toronto Stock Exchange (HCG), operating through its principal subsidiary, Home Trust Company. Home Trust is a federally regulated trust company offering residential and non-residential mortgage lending, securitization of residential mortgage products, consumer lending and credit card services. In addition, Home Trust offers deposits via brokers and financial planners, and through a direct-to-consumer deposit brand, Oaken Financial. Home Trust also conducts business through its wholly owned subsidiary, Home Bank. Licensed to conduct business across Canada, we have offices in Ontario, Alberta, British Columbia, Nova Scotia and Quebec.
