close-up of the top of td canada trust tower building, toronto

Toronto-Dominion Bank announced on Thursday that it’s issuing $1.75-billion worth of limited resource capital notes (LRCNs).

The notes will bear interest of 3.6% annually, payable semi-annually, for an initial period ending on Oct. 31, 2026. Following that, the interest rate will be set at the prevailing five-year Government of Canada Yield plus 2.747%.

In a release, TD said it may redeem the LRCNs from Oct. 1–31, commencing in 2026 and every five years thereafter. The bank will use the proceeds generated from the LRCNs for general corporate purposes.

The expected closing date of the offering is July 29, 2021.