CWB Financial Group

CWB closes $250 million issuance of "Series E" subordinated debentures

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

EDMONTON, December 17, 2012 – Canadian Western Bank (TSX: CWB) (“CWB” or the “Bank”) today closed its previously announced issue of $250 million “Series E” subordinated debentures (the “Debentures”) via a private placement to accredited investors. RBC Capital Markets and BMO Capital Markets acted as joint bookrunners on the transaction.

The Debentures bear interest at a fixed rate of 3.463% per annum, payable in equal semi-annual payments in arrears on June 17 and December 17 of each year, commencing June 17, 2013 until December 17, 2019. Thereafter, the interest rate will float to maturity at 3-month CDOR plus 1.60%, payable quarterly. The Debentures are redeemable by the Bank at a redemption price equal to par, plus accrued and unpaid interest, any time on or after December 17, 2019, subject to the prior written consent of the Superintendent of Financial Institutions Canada.
The Debentures will add to CWB’s already solid regulatory capital position and will qualify for transition allowances permitted for Canadian banks under the Basel III capital framework, effective January 1, 2013. Proceeds of the issue will be added to the Bank's general funds.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.