Brookfield Infrastructure Partners L.P. (BIP) announced that it will redeem all outstanding Series 3 cumulative class A preferred limited partnership units on December 31, 2025. Holders of record as of November 28, 2025 will receive a redemption price of C$25.00 per unit plus the final quarterly distribution of C$0.34375 per unit, payable on the redemption date.
The Series 3 units carry a fixed 5.50 % distribution rate and were scheduled for a potential reset on December 31, 2025. By redeeming them now, BIP locks in the current distribution level and avoids the risk of a higher rate that would be triggered by a rise in the 5‑year Canadian government bond yield plus 4.53 % or 5.50 %, whichever is greater. This move protects the partnership from future interest‑rate volatility in a tightening monetary environment.
BIP’s capital‑recycling strategy has already included the redemption of Series 1 preferred units on June 30, 2025, at the same C$25.00 price. The Series 3 redemption further reduces the preferred equity base, improving the debt‑to‑equity ratio, which stood at 179.7 % as of November 2025. The reduction in preferred equity enhances financial flexibility and frees capital for reinvestment in higher‑return opportunities, such as AI infrastructure and renewable energy projects.
For common unit holders, the redemption is expected to increase the distribution available to them by lowering the overall cost of capital and potentially boosting the partnership’s ability to maintain a stable and growing distribution policy. The move signals BIP’s continued commitment to delivering value to common unit holders while preserving the quality of its asset portfolio.
Brookfield Infrastructure Partners remains focused on long‑term, regulated assets that generate predictable cash flows. The proceeds from the Series 3 redemption will be deployed in line with the partnership’s broader strategy of selling mature assets and reinvesting in growth sectors, reinforcing its position as a leading global infrastructure investor.
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