By Marisa Wong
Morgantown, W.Va., May 16 – Manulife Financial Corp. announced it priced S$500 million of fixed-to-floating subordinated notes on Monday.
The 10-year notes will bear interest at 3.85% for the first five years. After that, the interest rate will be 197 basis points over the five-year Singapore dollar swap rate.
The notes will be callable in whole at par on May 25, 2021 and on any interest payment date after that.
DBS Bank Ltd. and Standard Chartered Bank are the joint lead managers for the Regulation S offering.
“This issuance marks our first debt transaction in Asian capital markets,” Steve Roder, chief financial officer, said in a press release.
The offering is expected to close on May 25.
The notes are expected to qualify as tier 2B capital for the company.
Proceeds will be used for general corporate purposes.
Manulife is a financial services group based in Toronto.
| Issuer: | Manulife Financial Corp.
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| Issue: | Subordinated notes
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| Amount: | S$500 million
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| Maturity: | May 25, 2026
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| Coupon: | Fixed at 3.85% for first five years; after that, 197 bps over five-year Singapore dollar swap rate
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| Managers: | DBS Bank Ltd. and Standard Chartered Bank
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| Co-manager: | New Zealand Banking Group Ltd.
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| Call: | In whole at par on May 25, 2021 and on any interest payment date after that
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| Pricing date: | May 16
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| Settlement date: | May 25
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| Distribution: | Regulation S
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