Home Capital announces the closure of the issue of mortgage-backed securities, series 2021-1



TORONTO–() – Home Capital Group Inc. (“Home Capital”) (TSX: HCG) and its subsidiary Home Trust Company (“Home Trust”) announce the closure of a previously disclosed private placement of mortgage-backed securities (“RMBS”). ) issued by Classic RMBS Trust (“Series 2021-1 Notes”), a securitization mechanism sponsored by the Home Trust. The 2021-1 series bonds are collateralized by a portfolio of almost uninsured residential mortgages mortgages and consists of tranches A, B and Z totaling $ 400 million.

The $ 340 million tranche was sold to accredited investors in Canada and qualified institutional buyers in the United States. The remaining $ 60 million, consisting of tranches B and Z, remained with the Home Trust.

Tranche A is rated AAA (sf) from DBRS and Aaa (sf) from Moody’s. It was priced at 110 basis points over the comparable maturity curve for Canadian government bonds, which corresponds to an annual interest rate of 1.433%.

“The performance of our first RMBS offering in 2019 has resulted in healthy demand for these bonds from a broad group of Canadian and US institutional investors,” confirmed Brad Kotush, executive vice president and chief financial officer at Home Capital. “The market acceptance of this proposal confirms our belief that we can expand this funding channel by releasing further RMBS on a sustainable programmatic basis.”

The 2021-1 Series Notes are not publicly tradable under the securities laws of any province or territory of Canada and may not be offered or sold in Canada, directly or indirectly, except in accordance with applicable private placement exceptions. Series 2021-1 Notes are not registered and will not be registered under the US Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States without registration or an applicable registration exemption. requirements of the Securities Law. Series 2021-1 Notes are offered in a private placement solely to individuals who are reasonably qualified to be Institutional Buyers under Rule 144A under the Securities Act, or outside the United States to non-US individuals under Rule S Of the Securities Act. This press release does not constitute an offer to sell or a solicitation to buy the 2021-1 Series Notes in any jurisdiction or an offer to buy.

Cautionary note regarding forward-looking statements

From time to time Home Capital Group Inc. makes written and oral forward-looking statements. They are included in the annual report, periodic reports to shareholders, regulations, press releases, Company presentations and other Company communications. Forward-looking statements are made in connection with the business goals and objectives, strategies, operations of the Company, the expected financial results and prospects of the Company, its industry and the Canadian economy. These statements of expected future results are “financial perspectives” within the meaning of National Instrument 51-102. Review the risk factors detailed in the Risk Management section of the First Quarter 2021 Report, as well as other publicly available Company information, which is available in the Electronic Document Analysis and Search System (SEDAR) at www.sedar.com, for material factors that could cause the Company’s actual results to differ materially from these statements. These risk factors are significant risk factors that the reader should consider and include credit risk, liquidity and funding risk, structural interest rate risk, operational risk, investment risk, strategic risk, reputational risk, compliance risk and capital adequacy risk, as well as additional risk factors. this may affect future results. Forward-looking statements can be found in the Report to Shareholders and in the Outlook section of the Annual Report. Forward-looking statements are generally identified with words such as “will,” “believe,” “expect,” “anticipate,” “intend,” “should,” “estimate,” “plan,” “forecast,” “may,” and “ could ”or other similar expressions.

About Home Capital: Home Capital Group Inc. is a publicly traded company listed on the Toronto Stock Exchange (HCG) and operates through its parent subsidiary, Home Trust Company. Home Trust is a federally regulated trust company offering residential and non-residential mortgages, securitization of residential mortgage products, consumer lending, and credit card services. In addition, Home Trust offers deposits through brokers and financial planners as well as brand deposits directly to Oaken Financial consumers. Home Trust also conducts business through its subsidiary Home Bank. Licensed to do business throughout Canada, we have offices in Ontario, Alberta, British Columbia, Nova Scotia and Quebec.


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