Fairstone Bank Closes Record $360M Deposit Note Sale

Fairstone Bank of Canada has raised $360 million in its largest-ever deposit note sale. The three-year senior deposit notes were priced at par with a fixed 4.310% coupon and mature on September 10, 2029.

The bank initially launched the offering with a minimum target of C$400 million but upsized to C$500 million after receiving orders worth more than C$1.7 billion from 41 investors, nearly 3.4 times oversubscription.

Amir Gorgi, executive vice president and chief financial officer, said the 'depth and quality of demand we received allowed us to achieve all of our key objectives.' He added that the results enabled the bank to price the notes with no new issue concession, narrowing its pricing gap versus larger Canadian peers.

The senior unsecured obligations rank equally with Fairstone Bank's other unsecured liabilities and are not insured under the Canada Deposit Insurance Corporation Act. The issuance follows two years of milestones, including public credit ratings and the integration of Home Trust, a subsidiary of Fairstone Financial.