The Toronto-Dominion Bank (TSX:TD) plans a domestic offering of $250 million of common shares to help fund its acquisition of Greenville, S.C.-based South Financial Group, Inc. the bank said Thursday.

TD has entered into an agreement with a syndicate of underwriters led by TD Securities Inc. for an issue of 3,525,000 common shares, at a price of $71 per common share.

On May 17, TD announced its intention to issue approximately $250 million worth of common shares prior to the closing of the South Financial transaction for “prudent capital management”.

The issue will qualify as Tier 1 capital for the and the expected closing date is June 15. Net proceeds will be used for general corporate purposes.

IE