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(TODD KOROL/Todd Korol/Reuters)
(TODD KOROL/Todd Korol/Reuters)

CWB sells $300-million with new rating Add to ...

Just one day after Canadian Western Bank secured its first debt rating, the bank was in the market issuing $300-million of subordinated notes, $75-million of which was designated for retail players.

The 10-year notes yield 4.389 per cent and priced at 200 basis points above 5-year Canada bonds. After the first five years, the notes will float at a spread over the Canadian Dealer Offered Rate (CDOR), but CWB can also redeem them at that point.

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CWB had been in discussions with DBRS Ltd. for years and finally applied for a rating in 2010, which resulted in a new BBB (high) rating on its subordinated debt this week. It's a big step forward because many portfolio managers are restricted from buying any unrated product.

RBC Dominion Securities and National Bank Financial are co-lead underwriters.

 
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