(Bloomberg) -- Northland Power Inc. sold the first corporate hybrid bond offering in Canadian dollars since the wipeout of Credit Suisse Group AG’s AT1s triggered a broad selloff in riskier debt.

The Toronto-based power producer sold C$500 million ($377 million) of 60-year green notes that are callable after five years to yield 9.5%, according to people with knowledge of the matter. It’s the first such debt to price in loonies since Feb. 28 when Intact Financial Corp. issued C$300 million of hybrids at a yield of 7.338%, according to data compiled by Bloomberg. 

Corporate hybrid bonds stand below senior creditors in the event of default or credit restructuring. They sold off in the wake of the writedown of $17 billion of the debt as part of UBS Group AG’s emergency rescue of Credit Suisse even though there are differences in structures compared with AT1s.

“The market is generally supportive of new issuance at this time, with investors willing to put cash to work,” said Furaz Ahmad, a Toronto-based corporate debt strategist at BMO Capital Markets before the pricing of the deal. “I would say that with the AT1 market reopening in Europe, demand should slowly return for hybrids/junior sub-debt.”

Read More: AT1 Market Is Open Again in Europe After Credit Suisse’s Wipeout

If structured appropriately, hybrids effectively allow companies to raise equity more cheaply and quickly than rights issues, with the added benefit of not upsetting common shareholders by diluting shares. In addition, the instruments can help preserve credit ratings.

The new hybrid notes will be rated BB+ by S&P Global Ratings and Fitch Ratings, two levels below the firm’s issuer credit ratings. The securities will benefit from 50% equity treatment by both rating companies, Northland Power said in a statement Wednesday.

The firm’s debt arrangers pushed ahead with the deal after carrying out an extensive roadshow with investors and after demand for hybrid securities in the global financial markets has shown signs of life. Last week, Paris-based Electricite de France SA issued $1.5 billion of perpetual notes with a call option after 10 years and this week Spain’s Banco Bilbao Vizcaya Argentaria SA and Bank of Cyprus sold AT1 notes in euros.

Northland Power’s transaction drew 44 buyers who placed orders for about 1.5 times the deal’s size, according to people familiar with the matter. A representative for the company didn’t respond to an email seeking comment. 

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