The Fédération des caisses Desjardins du Québec has issued $1,000,000,000 in 3.856% subordinated notes maturing on March 3, 2036. The notes, dated March 3, 2026, constitute Non-Viability Contingent Capital (NVCC) and qualify as Tier 2 regulatory capital under the AMF Guideline for Capital Adequacy Requirements.

The notes bear a fixed annual interest rate of 3.856% until the reset date of March 3, 2031, payable semi-annually. Thereafter, if not redeemed, the rate converts to a floating rate equal to Daily Compounded CORRA plus 1.28%, payable quarterly. The Federation retains the option to redeem the notes at par on or after the reset date, subject to AMF approval.

Upon a trigger event, the notes automatically convert into Class Z-Contingent Capital shares at a conversion price of $10.00 per share, with a 1.50 multiplier applied to the note value. The notes are unsecured, subordinated obligations ranking below all senior indebtedness but ahead of Tier 1 Capital instruments.

Net proceeds of approximately $996,500,000, after deducting the dealers' fee of $3,500,000 and offering expenses, will support Desjardins Group's liquidity, regulatory capital, and capital base diversification requirements. The notes are expected to be rated A (low) by DBRS, A2(hyb) by Moody's, and BBB+ by S&P.

Stikeman Elliott LLP served as legal counsel to the Federation, while Fasken Martineau DuMoulin LLP acted on behalf of the dealers. The dealer syndicate comprised Desjardins Securities Inc., Scotia Capital Inc., TD Securities Inc., and eight additional dealers acting as agents on a best-efforts basis.