Fairstone Bank of Canada Announces Successful Inaugural €500 Million Covered Bond Issuance

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TORONTO, Oct. 22, 2026 /CNW/ — Fairstone Bank of Canada (“Fairstone Bank” or the “Bank”) announced today the closing of its inaugural 3-year €500 million Covered Bond issuance (approximately C$800 million), marking a significant milestone in the Bank’s history and establishing a new funding platform that further strengthens its diversified funding strategy.

The issuance attracted exceptional institutional investor demand, generating orders of approximately € 1.5 billion from over 50 investors, representing 3 times oversubscription. The transaction was launched with initial price guidance of MS+45 bps and successfully priced at MS+40 bps, reflecting the strength and quality of investor demand. In addition, the transaction attracted multiple new international investors to the Bank’s funding program, further broadening and diversifying its global investor base.

“The successful issuance of our inaugural covered bond issuance represents a transformational milestone for Fairstone Bank and further demonstrates investor confidence in our franchise, financial strength and long-term growth trajectory,” said Amir Gorgi, Executive Vice President and Chief Financial Officer of Fairstone Bank. “The depth and quality of investor demand enabled us to achieve several key objectives, including establishing a new global funding platform, expanding and diversifying our investor base, achieving attractive pricing, and successfully introducing the Fairstone Bank credit story to the international covered bond market. We are extremely pleased with the outcome and grateful for the strong support received from investors.”

“This transaction represents the culmination of a tremendous amount of work across the organization and marks an important step in the continued evolution of Fairstone Bank’s funding platform,” added Peter Walker, Senior Vice President & Treasurer. “The strong investor reception to our inaugural covered bond issuance validates the quality of our mortgage franchise, the strength of our balance sheet, and our ability to access global capital markets on competitive terms.”

The Covered Bonds were issued under Fairstone Bank’s CAD $1.5 billion Global Legislative Covered Bond Programme, which the Bank established last month after receiving the approval of Canada Mortgage and Housing Corporation. Covered bonds are among the most established and widely recognized funding instruments globally and provide issuers with access to a deep and diversified institutional investor base while maintaining a high level of asset quality and investor protection.

Strengthening Fairstone Bank’s Funding Platform

The successful issuance further reinforces Fairstone Bank’s diversified funding strategy and complements its existing retail deposit, GIC and wholesale funding programs. The covered bond platform provides access to an additional source of secured term funding and enhances the Bank’s ability to access both domestic and international capital markets.

The transaction builds on a series of strategic milestones achieved by the Bank over the past two years, including the establishment of public credit ratings, the successful integration of Home Trust, and the continued expansion of the Bank’s funding and capital markets capabilities.

The issuance was led by BMO Capital Markets, DZ Bank, LBBW, Natixis and RBC Capital Markets as Joint Lead Managers, with McCarthy Tétrault LLP serving as primary issuer counsel.

Important Information

In the United Kingdom, this announcement is being distributed only to, and is directed only at, persons who: (A) (i) are “investment professionals” specified in Article 19(5) of the Financial Services and Markets Act (Financial Promotion) Order 2005 (the “Order”) or (ii) high net worth entities falling within Article 49(2)(a) to (d) of the Order or (iii) are other persons to whom it may otherwise lawfully be communicated; and (B) are “qualified investors” within the meaning of paragraph 15 of Schedule 1 to the Public Offers and Admissions to Trading Regulations 2024 (all such persons together being referred to as “Relevant Persons”). In the European Economic Area (the “EEA”), this announcement is addressed only to and directed only at, persons in member states who are “qualified investors” within the meaning of Article 2(e) of Regulation ((EU) 2017/1129 (“Qualified Investors”). This announcement must not be acted on or relied on (i) in the United Kingdom, by persons who are not Relevant Persons, and (ii) in any member state of the EEA, by persons who are not Qualified Investors. Any investment or investment activity to which this announcement relates is available only to: (i) in the United Kingdom, Relevant Persons; and (ii) in any member state of the EEA, Qualified Investors, and will be engaged in only with such persons. 

About Fairstone Bank of Canada

Fairstone Bank of Canada and its subsidiaries, including Fairstone Financial Inc. and Home Trust Company, deliver innovative, accessible and reliable financial solutions that enable Canadians to reach their financial goals. Collectively, we offer residential and commercial mortgages, consumer deposits and GICs, retail and automobile financing, credit cards and digital lending, in addition to unsecured and secured personal loans online and at more than 260 branches coast to coast. With a long-established history, we are proud to be Canada’s leading alternative lending bank. Learn more at FairstoneBank.ca.

SOURCE Fairstone Financial Inc.