Emera Incorporated closed a $750 million issuance of junior subordinated notes on March 23 2026, issuing two equal tranches of $375 million each. The Series A notes carry a 6.650% fixed‑to‑fixed reset rate, while the Series B notes carry a 6.850% rate, both due 2056.
The notes were issued through Emera US Finance, LLC, a wholly owned subsidiary of Emera. The proceeds are intended to provide long‑term, low‑cost capital that can be used to fund the company’s $20 billion capital plan and support its dividend policy. A portion of the net proceeds will also be used to redeem the company’s $1.2 billion of fixed‑to‑floating hybrids that reset in June 2026.
Emera’s capital plan is heavily weighted toward Florida, with roughly 80 % of the $20 billion earmarked for grid modernization, storm‑hardening, and gas infrastructure. The financing aligns with the company’s strategy to fund the plan through a mix of debt and equity while maintaining a strong dividend aristocrat status.
Financially, Emera reported full‑year 2025 adjusted net income of $1.045 billion, or $3.49 per share, a 19 % increase from 2024. The payout ratio improved to 83 % from 98 % in 2024, and the company continues to pay a quarterly dividend, with the next payment scheduled for May 15 2026.
Credit-wise, the junior subordinated notes received a BB+ rating from S&P, two notches below Emera’s BBB issuer rating. The notes are hybrid‑like, with 50 % equity content, and can defer interest payments for up to 20 consecutive semi‑annual periods, which helps preserve cash flow and strengthen the balance sheet.
Scott Balfour, President and CEO, has emphasized the company’s focus on extending rate‑base growth through 2030 and on the $20 billion capital plan that prioritizes customer reliability and infrastructure upgrades, especially in Florida. The new debt issuance supports these strategic priorities by providing flexible, low‑cost capital.
While no immediate market reaction data is available, the financing is part of Emera’s broader capital strategy and is likely viewed positively by investors who value stable dividends and disciplined growth.
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