The proceeds would be primarily used in Macquarie's non-bank US operations, Fitch said. The offer will be rated BBB by S&P and Fitch and Baa3 by Moody's, and will be guaranteed by Macquarie Group, the person said. When structured appropriately, hybrids effectively allow companies to raise equity more cheaply and quickly than through rights issues, with the added benefit of not upsetting shareholders by diluting shares. Moreover, coupons are tax deductible and the instruments can help preserve credit ratings. Hybrid securities, a blend of debt and equity, were popular with Australian borrowers before the global financial crisis and started to come back in Europe this year following clarity from ratings agencies and rising appetite for higher yielding credit globally.