As a result of strong investor demand for its public offering of non-cumulative 5-Year Rate Reset Class A Preferred Shares, Series AK, Toronto-Dominion Bank is increasing the size of the offering to 11 million shares, the bank said Thursday.

The gross proceeds of the offering will now be $275 million.

TD has also granted the underwriters an option to purchase, on the same terms, up to an additional 3 million Series AG Shares. The maximum gross proceeds raised under the offering will be $350 million should this option be exercised in full.

The Series AK Shares will yield 6.25% annually, payable quarterly for the initial period ending July 31, 2014. Thereafter, the dividend rate will reset every five years at a level of 4.33% over the then five-year Government of Canada bond yield.

Holders of the Series AK Shares will have the right to convert their shares into non-cumulative Floating Rate Class A Preferred Shares, Series AL (the Series AL Shares), subject to certain conditions, on July 31, 2014, and on July 31st every five years thereafter. Holders of the Series AL Shares will be entitled to receive quarterly floating dividends equal to the three-month Government of Canada Treasury bill yield plus 4.33%.

IE