Brookfield Corporation completed a C$250 million issuance of Class A Preference Shares, Series 54, on November 26, 2025. The offering, underwritten by a syndicate of Canadian banks, sold 10 million shares at C$25 each, generating gross proceeds of C$250 million.
The new Series 54 shares carry a cumulative quarterly fixed dividend of C$0.1406 per share, equivalent to a 5.65 % annual yield, and will remain at that rate until December 31, 2030. After that date, the dividend will reset every five years to the greater of the five‑year Canadian government bond yield plus 2.80 % or 5.65 %—a structure designed to keep the cost of capital predictable while allowing for inflationary adjustments.
By redeeming all outstanding Series 44 preference shares—currently 10 million shares at C$25 each—the company will eliminate a long‑term preference‑share liability that has been a fixed cost on its balance sheet. The redemption reduces Brookfield’s long‑term debt exposure and improves leverage ratios, freeing cash flow that can be deployed to growth initiatives or returned to shareholders through other means.
The transaction reflects a broader capital‑structure optimization strategy. Issuing Series 54 at a comparable dividend rate but with a reset clause allows Brookfield to lock in a favorable cost of capital for the next five years while preserving flexibility to adjust to market conditions thereafter. The move also signals management’s confidence in the company’s ability to service its preferred‑share obligations and to maintain a strong balance sheet as it continues to invest in renewable power, real‑estate, and infrastructure assets.
Overall, the preferred‑share issuance and redemption represent a significant step in Brookfield’s ongoing effort to streamline its capital structure, reduce long-term debt, and position the company for sustainable growth in its core asset‑management and operating businesses.
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