Brookfield Corporation announced that it will issue 8 million Class A Preference Shares, Series 54, at a price of C$25.00 per share, generating gross proceeds of C$200 million. The company also plans to redeem a minimum of 8 million of its existing Class A Preference Shares, Series 44, at the same price of C$25.00 per share, with the redemption scheduled for December 31 2025. The proceeds from the new issuance will be used to fund the redemption, thereby reducing the company’s preference‑share obligations while providing additional liquidity for future strategic initiatives.
The Series 54 shares carry a cumulative quarterly fixed dividend that yields 5.65 % per year through December 31 2030. The dividend rate will reset every five years thereafter to the greater of the 5‑year Government of Canada bond yield plus 2.80 % or 5.65 %. Underwriters have the option to purchase an additional 2 million shares, which would increase the gross offering to C$250 million and provide Brookfield with even greater flexibility.
The Series 44 shares, which are being redeemed, have a dividend rate that resets on December 31 2025 to the greater of the 5‑year Government of Canada bond yield plus 4.17 % or 5.00 %. Holders of record as of December 15 2025 will receive the previously declared quarterly dividend of C$0.3125 per share, payable on the redemption date. By redeeming the Series 44 shares before the reset, Brookfield avoids a potential increase in dividend cost that could arise if interest rates rise.
The transaction reflects Brookfield’s strategy to manage interest‑rate risk and optimize its capital structure. Locking in a fixed 5.65 % dividend until 2030 provides cost certainty for a defined period, while the Series 44 reset could expose the company to higher rates. The additional liquidity from the new issuance also positions Brookfield to pursue growth opportunities, consistent with the record C$178 billion of capital available for deployment reported in its Q3 2025 earnings. The company’s management emphasized that the move supports its broader goal of maintaining a strong balance sheet and funding future strategic initiatives.
Management highlighted the company’s continued execution on key initiatives, noting that the preferred‑share transaction is part of a broader effort to strengthen the balance sheet and support growth. “We continue to successfully execute on our key initiatives, positioning Brookfield for our next phase of growth,” said President Nick Goodman. The transaction aligns with the company’s recent earnings narrative of robust performance across its asset‑management, wealth‑solutions, and operating‑business segments.
Overall, the preferred‑share issuance and redemption represent a deliberate capital‑management decision aimed at securing predictable financing costs, reducing exposure to interest‑rate resets, and providing liquidity for future investments. The move underscores Brookfield’s focus on maintaining financial flexibility while supporting its growth strategy.
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