Power Financial Corp. announced today that it has agreed to issue 8 million non-cumulative first preferred shares, series L, for gross proceeds of $200 million.

The preferred shares will be priced at $25 per share and will carry an annual dividend yield of 5.1%. Closing is expected on August 4.

The issue will be underwritten by a syndicate of underwriters led by BMO Capital Markets and Scotia Capital Inc.

Proceeds from the issue will be used to supplement the company’s financial resources and for general corporate purposes.

Power Financial is a diversified management and holding company that has interests, directly or indirectly, in companies that are active in the financial services sector in Canada, the United States and Europe.