04:07 PM EST, 03/05/2024 (MT Newswires) -- CIBC (CM.TO) Tuesday announced a domestic public offering of $500 million of Non-Cumulative 5-Year Fixed Rate Reset Class A Preferred Shares Series 57 Non-Viability Contingent Capital (NVCC), which will be sold to certain institutional investors through a dealer syndicate led by CIBC Capital Markets.

The Preferred Shares will be issued at a price of $1,000 per share and will yield 7.334% annually.

The Preferred Shares will pay dividends at a rate of 7.337% annually, payable semi-annually, as and when declared by the Board of Directors of CIBC, for the initial period ending on, but excluding, April 12, 2029. Thereafter, the dividend rate on the Preferred Shares will reset every five years at a rate equal to the prevailing 5-year Government of Canada Yield plus 3.90%.

The expected closing date of the offering is March 12, 2024.

CIBC may redeem the Preferred Shares during the period from March 12 to and including April 12, commencing on March 12, 2029 and every five years thereafter with the prior written approval of the Superintendent of Financial Institutions (Canada), in whole or in part on not less than 10 days' nor more than 60 days' prior notice.

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