CWB to redeem $300 million of subordinated debentures

EDMONTON, October 23, 2015 – Canadian Western Bank (“CWB”) today announced its intention to redeem all outstanding 4.389% subordinated debentures due November 30, 2020 (the “debentures”) at par plus accrued interest to, but excluding, the redemption date. The current principal amount outstanding is $300 million. The redemption will occur on November 30, 2015, and will be financed out of CWB’s general corporate funds.

The debentures were issued on November 29, 2010, and do not qualify as non-viability contingent capital (“NVCC”) under the Basel III regulatory capital requirements. Due to the mandatory phase out of non-NVCC capital instruments from regulatory capital, $152.5 million of CWB’s outstanding subordinated debentures are not included in regulatory capital in fiscal 2015. In the absence of this redemption, that exclusion would increase to $220 million in fiscal 2016. Subsequent to the redemption, all of CWB’s outstanding subordinated debentures will be included in regulatory capital and the Total capital ratio will remain well above the regulatory minimum of 10.5% and above management’s operating targets.

 

For futher information contact:

Matt Evans, CFA
Assistant Vice President, Investor Relations
Canadian Western Bank
Phone: (780) 969-8337
E-mail: [email protected]