By Marisa Wong
Morgantown, W.Va., Nov. 14 – Manulife Financial Corp. announced it priced S$500 million of fixed-to-floating rate subordinated notes due Nov. 21, 2029 on Tuesday.
This is Manulife’s first green bond issuance, according to a press release. The notes will also be the first green bond issuance by a life insurance company and the first green bond issuance by a Canadian issuer to be certified as climate bonds by the Climate Bonds Initiative.
Proceeds will be used to finance or refinance new or existing eligible assets consistent with Manulife’s recently released Green Bond Framework. The framework is aligned with the International Capital Market Association’s Green Bond Principles 2017 and directs the use of proceeds toward renewable energy, green buildings, sustainably managed forests, energy efficiency, clean transport, sustainable water management or pollution prevention and control.
The 12-year notes will bear interest at 3% for the first seven years. After that, the interest rate will be 83.2 basis points over the five-year Singapore dollar swap rate.
The notes will be callable in whole at par on Nov. 21, 2024 and on any interest payment date after that.
DBS Bank Ltd., Hongkong and Shanghai Banking Corp. Ltd., Singapore Branch and Standard Chartered Bank are the joint lead managers for the Regulation S offering in Singapore.
“As one of the world’s largest life insurers, our success is linked to the long-term well-being of our customers, our employees and the communities we serve around the world,” chief financial officer Steve Roder said in the press release.
“We are also a long-term investor which puts us in a unique position to help facilitate the transition to a more sustainable economy. Issuing a green bond aligns our financing with our existing green investment activities,” Roder added.
The notes are expected to qualify as tier 2 capital for the company.
The offering is expected to close on Nov. 21.
Manulife is a financial services group based in Toronto.
| Issuer: | Manulife Financial Corp.
|
| Issue: | Subordinated notes
|
| Amount: | S$500 million
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| Maturity: | Nov. 21, 2029
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| Managers: | DBS Bank Ltd., Hongkong and Shanghai Banking Corp. Ltd., Singapore Branch and Standard Chartered Bank
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| Coupon: | Fixed at 3% for first seven years; after that, 83.2 bps over five-year Singapore dollar swap rate
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| Call: | In whole at par on Nov. 21, 2024 and on any interest payment date afterward
|
| Pricing date: | Nov. 14
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| Settlement date: | Nov. 21
|
| Distribution: | Regulation S
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