Equitable Bank Launches Inaugural Social Covered Bond

Miriam Mukuru

Canada's Equitable Bank launched a 500 million euro ($531.05 million) three-year social covered bond, it said Tuesday.

The order book was oversubscribed by more than eight times, and more than half of the funds came from sustainable investors with a mandate to buy sustainable bonds, the bank said.

"The high proportion of dedicated Socially Responsible Investment (SRI) investors in Equitable Bank's order book--at a rate of more than 50%--underscores both the strength of our sustainability strategy and the high quality of our social covered bond," Equitable Bank Chief Financial Officer Chadwick Westlake said.

ING expects the bank's covered bonds to continue exhibiting a noticeable pickup compared to other Canadian bonds, and in the social and euro benchmark format, despite the deal being constructive to the market, sector strategist Marine Leleux said in a note.

Write to Miriam Mukuru at miriam.mukuru@wsj.com

(END) Dow Jones Newswires

April 17, 2024 11:57 ET (15:57 GMT)

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