Sale was led by banking giants
HomeEquity Bank subsidiary CHIP Mortgage Trust has announced the successful sale of $175 million in senior medium-term notes. The sale was led by Scotiabank and RBC Capital Markets, with participation from BPO Capital Markets, CIBC World Markets, National Bank Financial Markets, and TD Securities.
The notes carry a 4.244% coupon rated AAA (sf) by DBRS Limited and have an expected final payment date of January 28, 2030. CMT will use the proceeds of this issue to refinance existing debt, acquire mortgages originated by HomeEquity Bank, and support ongoing operations.
"Strong investor support has resulted in another very successful issue of medium-term notes by CHIP Mortgage Trust," said Atul Chandra, executive vice president and chief financial officer, at HomeEquity Bank.
"HomeEquity Bank's exceptional operating and financial results as Canada's leading provider of reverse mortgages resonated well with investors and drove very strong demand for these notes. Medium-term notes are, and will continue to be, a key source of funding for our rapidly growing reverse mortgage business."
The bank was founded 35 years ago to address the financial needs of Canadians who wanted access to their home equity. HomeEquity Bank is a portfolio company of the Ontario Teacher's Pensions Plan Board, a global investor that delivers retirement income for current and retired teachers in Ontario.
