Canadian Western Bank announced on Thursday that Canadian Western Bank Capital Trust has closed a $105 million offering of Trust Capital Securities – Series 1.
The CWB WesTS – Series 1 were privately placed with institutional investors and have an annual fixed yield of 6.199% payable semi-annually on a non-cumulative basis until Dec. 31, 2016 and thereafter, a yield determined on the basis of the CDOR 180-day Bankers’ Acceptance rate plus 2.55%.
The CWB WesTS – Series 1 qualify as Tier 1 capital of Canadian Western Bank. On a pro forma basis, the issue increases CWB’s total capital ratio to 14.6%, compared to 12.7% at April 30, while the pro forma Tier 1 capital ratio strengthens to 10.5%, from 8.9%. The increase in regulatory capital will support ongoing growth of CWB’s commercial and retail banking businesses without diluting CWB’s existing shareholder base.
The CWB WesTS – Series 1 are the first unrated innovative Tier 1 capital securities issued in Canada. BMO Capital Markets acted as agent for the transaction.
“We are very pleased with the successful placement of these securities. The CWB WesTS are a new source of Tier 1 capital for us and provide efficient support for continued growth, as well as additional flexibility in considering future acquisitions and dividend increases,” said Larry Pollock, Canadian Western Bank’s president and CEO.
Canadian Western Bank announces $105 million innovative Tier 1 capital issue
New source of capital will provide efficient support for continued growth
- By: IE Staff
- August 31, 2006 August 31, 2006
- 11:40