Yet another way to own bank stocks is on the way. 5Banc Split Inc. is a new split share vehicle set up to buy shares in the Big Five.

5Banc Split will hold a portfolio of common shares of Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and TD Bank.

Its objective is generate fixed cumulative preferential dividends for the holders of its class A preferred shares and to enable the holders of the capital shares to participate in any capital appreciation.

The offering consists of an undetermined number of shares, priced at $25 per share. Holders of preferreds will be entitled to receive quarterly fixed cumulative preferential dividends, which will be funded primarily from the dividends received on the portfolio shares.

The capital shares will provide their holders with a leveraged investment, the value of which is linked to changes in the market price of the portfolio shares. They will also receive quarterly dividends if the dividends paid on the portfolio shares, less the administrative and operating expenses of the company, exceed the preferred share dividend amount.

The deal is being underwritten by TD Securities Inc., with some help from Scotia Capital Markets Inc. They’ll receive a 3% selling commission on the deal.

TD Securities will receive an annual fee of 0.15% of the firm’s market value for administration, paid monthly. It will also receive trading commissions for buying the portfolio shares, at rates charged to comparable institutional investors.