As you know, one of First National’s great strengths is the diversity of our funding model. For over 30 years, it has enabled us to serve borrowers efficiently and effectively on the way to becoming Canada’s largest commercial mortgage lender and largest non-bank mortgage lender with over $110 billion under management.
Today we added further strength to our model by successfully completing a new $200 million bond transaction. For the Company, this unsecured note issuance represents another source of reliable funding for the next five years and ensures the continuity of capital to support our NHA MBS and CMB business.
This is our second unsecured bond issue – the last was in 2015. This new transaction, which has the same rating, was almost five times oversubscribed with investments from 38 different institutions.
The issuance was priced at a spread of 2.10% over the benchmark Government of Canada bond. In 2015, the spread on our last deal was 3.25%. This dramatic change reflects the investment community’s confidence in First National – which is also shown in the long-term rise in the Company’s market capitalization (now standing at a record $2.6 billion) – and five years of strong performance.
We’re delighted by this development and excited by the opportunities we see ahead to support your growth plans not only as an always dependable provider of capital, but as your independent commercial financing advisor.
If you have any questions or would like more information about this, feel free to reach out to our sales team.