Pacific & Western Bank of Canada has completed a domestic private placement offering of $10 million of 10-year term subordinated notes, Pacific & Western Credit Corp. said Friday.

The notes have a coupon of 11% per year. Net proceeds from the offering are being used to increase PWBank’s regulatory capital. The bank estimates that its Total Capital ratio is now over 12.5%.

“While these difficult economic times are proving challenging for our industry, this boost to our regulatory capital will allow us to take advantage of unique lending opportunities available to our specialized niche bank,” says David Taylor, president and CEO of PWBank.

Scotia Capital Inc. acted as the financial advisor to the bank.

PWBank specializes in providing financing to relatively low risk markets that include government entities including hospitals, school boards, universities and colleges, municipalities, provincial and federal government agencies, and insured residential mortgages. The bank is a wholly owned subsidiary of Pacific & Western Credit Corp.

IE