Bank of Canada today announced a domestic public offering of $300 million of Non-Cumulative First Preferred Shares Series AB.

The bank will issue 12 million preferred shares priced at $25 per share and holders will be entitled to receive non-cumulative preferential quarterly dividends in the amount of 29.375¢ per share, to yield 4.7% annually.

Subject to regulatory approval, on or after Aug. 24, 2011, the bank may redeem the preferred shares in whole or in part at a declining premium.

The offering will be underwritten by a syndicate led by RBC Capital Markets. The expected closing date is July 20.

The net proceeds of this transaction will be used for general business purposes and will strengthen the bank’s capital ratios.