Canada’s

EQB Inc.

, a bank holding company, sold $200 million of additional tier one securities on Monday, according to people with knowledge of the matter and confirming an earlier Bloomberg report.

The deal was priced at a yield 3.65 percentage points above the government curve, compared with initial talk in the 3.75 percentage point area, the people said, asking not to be identified as they aren’t authorized to speak publicly. As many as 38 buyers put in orders more than three times the size of the deal, they added.

The securities, a type of additional tier one debt known as limited recourse capital notes, can be bought back by the company after five and a half years and have a final maturity in 2086. If EQB runs into trouble, these LRCN notes will convert to a type of preferred shares, according to a presentation seen by Bloomberg.

EQB Inc. first offered LRCNs in July 2024, when it sold $150 million of the securities.

A representative of EQB wasn’t immediately available for comment.

Bloomberg.com