HomeEquity Bank subsidiary, CHIP Mortgage Trust, Issues $175 million of Medium Term Notes
CHIP Mortgage Trust ("CMT" or the "Trust") today announced that it has concluded the sale of $175 million...
CHIP Mortgage Trust (“CMT” or the “Trust”) today announced that it has concluded the sale of $175 million of senior medium-term notes (the “Notes”). The dealer syndicate for the sale was led by CIBC Capital Markets and TD Securities, and included BMO Capital Markets, National Bank Capital Markets, RBC Capital Markets and Scotiabank. The Notes have a coupon of 4.530%, are rated AAA (sf) by DBRS Limited and have an expected final payment date of February 20, 2032.
HomeEquity Bank subsidiary, CMT will use the proceeds of this issue to refinance outstanding indebtedness, acquire mortgages originated by HomeEquity Bank, and to fund ongoing operations.
“The depth of demand for this issuance reflects confidence in HomeEquity Bank’s performance and long-term growth,” said Atul Chandra, Executive Vice President and Chief Financial Officer. “With orders substantially exceeding the offering, CHIP Mortgage Trust has completed another successful medium term note issuance that has further strengthened its investor base. Our strong operating and financial results, supported by our leadership in Canada’s reverse mortgage market, continue to attract investors,” added Chandra. “Medium term notes remain central to our funding strategy, providing the capacity to support our growing business and help more Canadians access the equity in their homes.”
About CHIP Mortgage Trust
CMT is a wholly owned subsidiary of HomeEquity Bank which is a Schedule 1 Canadian Bank offering a range of reverse mortgage solutions including the flagship CHIP Reverse Mortgage™ product. HomeEquity Bank was founded 40 years ago to address the financial needs of Canadians who wanted to access the equity of their top asset – their home. HomeEquity Bank is committed to empowering Canadians aged 55 plus to live the retirement they deserve, in the home they love. HomeEquity Bank is a portfolio company of Ontario Teachers’ Pension Plan Board, a global investor that delivers retirement income for 340,000 current and retired teachers in Ontario. For more information, visit www.chip.ca.
Source : CHIP Mortgage Trust
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