May 3, 2017 / 1:55 PM / a year ago

Canada's Equitable Group adds lenders to C$2 bln loan syndicate

May 3 (Reuters) - Canadian mortgage provider Equitable Group Inc said on Wednesday it had added three more banks to a syndicate that would fund its C$2 billion ($1.46 billion) loan commitment.

Subprime mortgage lenders in Canada have been racing to shore up confidence in their model as depositors pulled more money out of rival Home Capital Group Inc’s high-interest savings accounts.

Lenders have suffered since a securities regulator alleged last month that alternative lender Home Capital hid mortgage broker fraud from investors.

Equitable Group said on Wednesday that the syndicate of lenders supporting its two-year loan commitment now also includes Bank of Montreal, Royal Bank of Canada and Bank of Nova Scotia.

Earlier this week, Equitable Group said it had received a letter of commitment for the C$2 billion secured funding facility from banks including Toronto-Dominion Bank, Canadian Imperial Bank of Commerce and National Bank of Canada.

Equitable Group’s shares were up 1.2 percent at C$46.62 in morning trading. (Reporting by Arathy S Nair in Bengaluru; Editing by Shounak Dasgupta)

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