TD Bank (NYSE: TD) prices C$1.25B AT1 Limited Recourse Capital Notes
Rhea-AI Filing Summary
The Toronto-Dominion Bank is raising capital through a Canadian public offering of C$1.25 billion of 5.918% Non-Viability Contingent Capital Additional Tier 1 Limited Recourse Capital Notes Series 7. These notes pay 5.918% annually, with quarterly payments, until July 31, 2031.
After that date, the interest rate resets every five years based on the 5-year Government of Canada Yield plus 2.85%, and the notes mature on July 31, 2086. The bank expects the offering to close on June 11, 2026 and plans to use the net proceeds for general corporate purposes.
Each note holder’s recourse is limited to assets in a dedicated trust that will hold 1,250,000 Non-Cumulative 5-Year Fixed Rate Reset NVCC Preferred Shares, Series 34. TD may, with regulatory approval, redeem the notes starting July 1, 2031, and every five years thereafter, on at least 10 days’ and at most 60 days’ notice.
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Key Figures
AT1 LRCN offering size: C$1.25 billion
Initial coupon rate: 5.918% annually
Reset spread: 2.85% over 5-year GoC Yield
+5 more
8 metrics
AT1 LRCN offering size
C$1.25 billion
Canadian public offering of NVCC AT1 Limited Recourse Capital Notes Series 7
Initial coupon rate
5.918% annually
Interest on LRCNs until July 31, 2031, payable quarterly
Reset spread
2.85% over 5-year GoC Yield
Coupon resets every five years after July 31, 2031
Maturity date
July 31, 2086
Final maturity of the Limited Recourse Capital Notes
Preferred Shares Series 34
1,250,000 shares
Held in Limited Recourse Trust backing the LRCNs
First redemption window
From July 1 to July 31, 2031
Optional redemption dates, subject to regulatory approval
Total assets
CDN$2.1 trillion
TD assets as of April 30, 2026
Clients served
28.1 million
TD clients across four key business segments
Key Terms
Non-Viability Contingent Capital, Additional Tier 1, Limited Recourse Capital Notes, NVCC Preferred Shares, +2 more
6 terms
Non-Viability Contingent Capital financial
"C$1.25 billion of 5.918% Non-Viability Contingent Capital (“NVCC”) Additional Tier 1 (“AT1”)"
Additional Tier 1 financial
"Non-Viability Contingent Capital (“NVCC”) Additional Tier 1 (“AT1”)"
Limited Recourse Capital Notes financial
"Limited Recourse Capital Notes Series 7 (the “LRCNs”)"
Limited recourse capital notes are debt-like securities where repayment and investor claims are restricted to the cash flows or assets tied to a specific pool, project, or collateral; holders cannot pursue the issuer’s other assets if those designated sources fail. For investors this usually means higher potential yield but greater risk—think of lending money secured only by a single rental property’s rent rather than the borrower’s entire balance sheet, so returns depend on that asset’s performance.
Government of Canada Yield financial
"reset every five years based on the prevailing 5-year Government of Canada Yield plus 2.85 per cent"
The Government of Canada yield is the annual return investors receive from lending money to the Canadian federal government through its bonds and treasury notes; it’s shown as a percentage and moves as buyers and sellers trade those securities. Investors use it like a baseline interest rate—similar to a bank’s advertised savings rate—for valuing other investments, setting borrowing costs and gauging overall economic confidence, because government bonds are seen as very low-risk.
Limited Recourse Trust financial
"TD LRCN Limited Recourse Trust™ (the “Limited Recourse Trust”)"
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What capital transaction did TD (TD) announce in this Form 6-K?
TD announced pricing of a Canadian public offering of C$1.25 billion Non-Viability Contingent Capital Additional Tier 1 Limited Recourse Capital Notes Series 7, raising regulatory capital for general corporate purposes.
What is the interest rate on TD’s new AT1 Limited Recourse Capital Notes?
The notes pay 5.918% annually, with interest paid quarterly until July 31, 2031. After that, the coupon resets every five years at the 5-year Government of Canada Yield plus 2.85 percentage points.
When do TD’s new AT1 Limited Recourse Capital Notes mature and when is closing expected?
The Limited Recourse Capital Notes mature on July 31, 2086. The expected closing date of the C$1.25 billion offering is June 11, 2026, subject to customary conditions being satisfied.
How is investor recourse structured for TD’s new Limited Recourse Capital Notes?
Each holder’s recourse is limited to their share of assets in TD LRCN Limited Recourse Trust. That trust will hold 1,250,000 Non-Cumulative 5-Year Fixed Rate Reset NVCC Preferred Shares, Series 34, except in limited circumstances.
When can TD redeem the new AT1 Limited Recourse Capital Notes?
With prior approval from the Superintendent of Financial Institutions (Canada), TD may redeem the notes starting July 1, 2031 and every five years thereafter, between July 1 and July 31, on 10 to 60 days’ notice.
How large is TD (TD) and what was its asset base in 2026?
TD is one of North America’s largest banks, serving 28.1 million clients across multiple businesses. It reported CDN$2.1 trillion in assets as of April 30, 2026, and has more than 13 million active mobile users in Canada and the United States.