Fairstone Bank of Canada has announced the successful closure of its $300 million three-year Notes issuance under the Canvas Cards Trust Series 2026-1 securitization program. The transaction, which closed on June 8, 2026, marks the bank's second asset-backed securities (ABS) issuance under its Canvas credit card platform, highlighting the strength and scalability of its cards business and wholesale funding program.
Transaction Details
The Series 2026-1 issuance comprises $258 million of Class A Notes, $24 million of Class B Notes, and $18 million of Class C Notes. These notes are primarily backed by a seasoned pool of Walmart Mastercard credit card receivables originated and serviced by Fairstone Bank. The issuance attracted robust institutional demand, generating over $1 billion in orders and achieving an oversubscription of more than 3.5 times. A total of 21 investors participated, including a significant number of new investors, thereby broadening and diversifying the investor base.
Improved Execution Outcomes
Execution outcomes improved across all tranches compared to Fairstone Bank's inaugural ABS issuance completed last year. The bank observed tightening spreads and increased participation in subordinated classes, reflecting growing investor confidence in the performance and structure of the credit card receivables program.
Amir Gorgi, Executive Vice President and Chief Financial Officer of Fairstone Bank of Canada, stated: "This outcome underscores the confidence investors have in our credit fundamentals and our ability to consistently execute in the capital markets. We are committed to maintaining a disciplined approach to balance sheet management while continuing to expand and diversify our funding platform in support of our long-term growth ambitions."
Underwriting and Management
The issuance was conducted pursuant to an offering memorandum with BMO Capital Markets acting as structuring lead. BMO Capital Markets, CIBC Capital Markets, and TD Securities served as joint bookrunners, while Desjardins Securities, Laurentian Bank Securities, National Bank Financial Markets, RBC Capital Markets, and Scotiabank acted as co-managers.
About Fairstone Bank of Canada
Fairstone Bank of Canada and its subsidiaries, including Fairstone Financial Inc. and Home Trust Company, deliver innovative, accessible, and reliable financial solutions to help Canadians achieve their financial goals. The bank offers residential and commercial mortgages, consumer deposits and GICs, retail and automobile financing, credit cards, digital lending, and unsecured and secured personal loans online and at more than 260 branches across the country. With a long-established history, Fairstone Bank is recognized as Canada's leading alternative lending bank. More information is available at FairstoneBank.ca.
SOURCE Fairstone Financial Holdings Inc.
