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CIBC Arranges $120MM Syndicated Credit Facility for HomEquity Bank

August 29, 2017, 07:00 AM
Filed Under: Lender Finance
Related: CIBC, Lender Finance

HomEquity Bank announced that it has secured a $120 million senior revolving credit facility, secured by a portfolio of reverse mortgages. This Facility has been provided by a syndicate of five leading lenders and is renewable annually. CIBC served as Sole Lead Arranger and Sole Bookrunner, and will act as Administrative Agent under the Facility. The other syndicate members are ICICI Bank Canada, The Bank of Nova Scotia, National Bank of Canada and Raymond James.

This credit facility adds to the range of options of the Bank in managing its funding requirements, as it continues to focus on consistent and long-term growth. The Bank has been experiencing record-setting growth, with reverse mortgage originations during the first half of this year increasing by 38% over the same period last year, driven by favourable demographics and increased awareness, resulting in growing demand from Canadian seniors.

"We are very pleased with the positive response from our lending syndicate, which resulted in commitments at a level higher than we had targeted," said Atul Chandra, Executive Vice President & Chief Financial Officer. "This additional source of stable funding further enhances the flexibility that HomEquity Bank has for continuing to fund its rapidly growing reverse mortgage business."

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