Funding
Fairstone Bank of Canada Closes Inaugural €500 Million Covered Bond With €1.5 Billion in Orders
By News Desk ·
Key takeaways
- Fairstone Bank of Canada closed an inaugural 3-year €500 million covered bond, about C$800 million.
- The issuance drew roughly €1.5 billion in orders from more than 50 investors, a 3 times oversubscription.
- BMO Capital Markets, DZ Bank, LBBW, Natixis and RBC Capital Markets were Joint Lead Managers.
Fairstone Bank of Canada closed its inaugural 3-year €500 million covered bond issuance, about C$800 million, the bank said on October 22, 2026. The transaction drew orders of approximately €1.5 billion from over 50 investors, a 3 times oversubscription, and priced at MS+40 bps after launching at MS+45 bps, according to Newswire.
Fairstone's First Covered Bond Draws Global Demand
The issuance was led by BMO Capital Markets, DZ Bank, LBBW, Natixis and RBC Capital Markets as Joint Lead Managers, with McCarthy Tétrault LLP as primary issuer counsel. The bank said the transaction brought multiple new international investors into its funding program and broadened its global investor base.
"The successful issuance of our inaugural covered bond issuance represents a transformational milestone for Fairstone Bank and further demonstrates investor confidence in our franchise, financial strength and long-term growth trajectory," said Amir Gorgi, Executive Vice President and Chief Financial Officer of Fairstone Bank.
Peter Walker, Senior Vice President and Treasurer, said the transaction "marks an important step in the continued evolution of Fairstone Bank's funding platform" and validates the quality of its mortgage franchise and balance sheet. The covered bonds were issued under Fairstone Bank's CAD $1.5 billion Global Legislative Covered Bond Programme, established last month after Canada Mortgage and Housing Corporation approval. The bank said the platform complements its retail deposit, GIC and wholesale funding programs.
Fairstone's Funding and Capital Record
Fairstone Bank's funding record shows five rounds, according to akta.pro company records, including a $362.2 million debt-funded round in September 2026, $215.2 million in June 2026, $313 million in April 2026 and $400 million in February 2026. The same records list total funding of $1.5 billion, with the last round dated September 8, 2026.
| Date | Amount |
|---|---|
| February 2026 | $400 million |
| April 2026 | $313 million |
| June 2026 | $215.2 million |
| September 2026 | $362.2 million |
Earlier Fairstone Funding Milestones
In September 2026, Fairstone Bank received CMHC approval to establish a CAD $1.5 billion legislative covered bond programme and planned its inaugural issuance for the fourth quarter of 2026, Newswire reported. In September 2026, the bank closed a $500 million three-year senior deposit note offering, its largest, oversubscribed by more than 3.4 times with about $1.7 billion in orders from 41 investors, Newswire reported. In June 2026, it closed a $300 million three-year notes issuance under Canvas Cards Trust Series 2026-1, backed by Walmart Mastercard receivables, oversubscribed over 3.5 times with $1 billion in orders from 21 investors, Newswire reported.
Fairstone's Programme Approval
The CAD $1.5 billion legislative covered bond programme was registered with Canada Mortgage and Housing Corporation, and the bank said in September 2026 that it planned its inaugural issuance in the fourth quarter of 2026.