Surrey, B.C., Closing October 29, Coast Capital Savings has issued a $100 million, 12 year no call 7 subordinated note offering. With the latest offering, Coast Capital remains one of the first and only credit unions to issue major capital market offerings.
“We have now issued three offerings through the capital markets,” explains Coast Capital’s Chief Financial Officer, David Gaskin. “In total, year-to-date, we have offered $300 million in subordinate notes and an additional $175 million in senior deposit notes. Earlier this year, Coast Capital achieved its long-term investment grade rating allowing us to be the first credit union in Canada to raise funding through the capital markets for terms longer than one year.”
At a rate of 5.25% for the first seven years and a floating rate of 90 day CDOR plus 242 basis points for the following five years with an option to redeem after seven years, the note offering speaks to positive investor confidence in the Surrey-based credit union and signals support for its strategic direction, financial position and prudent management.
“As Coast Capital works towards becoming a federal credit union, we continue to explore different ways to pragmatically and creatively deepen our capital reserves and liquidity,” explains Gaskin. “It is another way that we continue to grow and help more Canadians achieve what’s important in their lives.”
About Coast Capital
Coast Capital Savings is Canada’s largest credit union by membership. An Imagine Canada Caring Company and a certified B Corporation in recognition of its social performance, the credit union invested $5.6 million into local communities in 2017, focusing on empowering and engaging youth. Coast Capital is one of Canada's Most Admired Corporate Cultures™, and is a winner of the Canada's Best Managed Companies Platinum Club designation. It has 52 branches serving its 555,000 members in the Metro Vancouver, Fraser Valley, Vancouver Island and Okanagan regions of British Columbia. Product innovations include Canada's first free chequing account from a full-service financial institution. To learn more, visit coastcapitalsavings.com.