Manulife announces Subordinated Debenture issue
Manulife Financial Corporation (MFC) has announced plans to issue $500 million in subordinated debentures with a maturity date of May 23, 2035. The debentures will feature a fixed interest rate of 3.983% until May 23, 2030, after which it will switch to a floating rate of 1.32% over Daily Compounded CORRA. The offering is being managed by a syndicate co-led by RBC Capital Markets, Scotiabank, and TD Securities, with an expected closing date of May 23, 2025.
Subject to regulatory approval, MFC may redeem the debentures wholly or partially after May 23, 2030 at par value plus accrued interest. The company plans to use the proceeds for general corporate purposes, including subsidiary investments and potential redemption of existing securities.
Manulife Financial Corporation (MFC) ha annunciato l'emissione di 500 milioni di dollari in debentures subordinate con scadenza il 23 maggio 2035. Le debentures avranno un tasso di interesse fisso del 3,983% fino al 23 maggio 2030, dopodich茅 passeranno a un tasso variabile pari all'1,32% sopra il CORRA composto giornalmente. L'offerta 猫 gestita da un sindacato co-guidato da RBC Capital Markets, Scotiabank e TD Securities, con una data di chiusura prevista per il 23 maggio 2025.
Soggetta all'approvazione normativa, MFC potr脿 rimborsare le debentures in tutto o in parte dopo il 23 maggio 2030 al valore nominale pi霉 gli interessi maturati. La societ脿 intende utilizzare i proventi per scopi aziendali generali, inclusi investimenti nelle controllate e potenziali rimborsi di titoli esistenti.
Manulife Financial Corporation (MFC) ha anunciado planes para emitir 500 millones de d贸lares en debentures subordinados con vencimiento el 23 de mayo de 2035. Los debentures tendr谩n una tasa de inter茅s fija del 3,983% hasta el 23 de mayo de 2030, tras lo cual cambiar谩n a una tasa variable del 1,32% sobre el CORRA compuesto diariamente. La oferta est谩 siendo gestionada por un sindicato co-liderado por RBC Capital Markets, Scotiabank y TD Securities, con una fecha de cierre prevista para el 23 de mayo de 2025.
Sujeto a la aprobaci贸n regulatoria, MFC podr谩 redimir los debentures total o parcialmente despu茅s del 23 de mayo de 2030 al valor nominal m谩s los intereses acumulados. La empresa planea usar los fondos para prop贸sitos corporativos generales, incluyendo inversiones en subsidiarias y posible redenci贸n de valores existentes.
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Manulife Financial Corporation (MFC) a annonc茅 son intention d鈥櫭﹎ettre 500 millions de dollars en d茅bentures subordonn茅es arrivant 脿 茅ch茅ance le 23 mai 2035. Ces d茅bentures offriront un taux d鈥檌nt茅r锚t fixe de 3,983% jusqu鈥檃u 23 mai 2030, apr猫s quoi elles passeront 脿 un taux variable de 1,32% au-dessus du CORRA compos茅 quotidiennement. L鈥櫭﹎ission est g茅r茅e par un syndicat co-dirig茅 par RBC Capital Markets, Scotiabank et TD Securities, avec une cl么ture pr茅vue pour le 23 mai 2025.
Sous r茅serve de l鈥檃pprobation r茅glementaire, MFC pourra racheter tout ou partie des d茅bentures apr猫s le 23 mai 2030 脿 leur valeur nominale plus les int茅r锚ts courus. La soci茅t茅 pr茅voit d鈥檜tiliser les fonds pour des besoins g茅n茅raux d鈥檈ntreprise, y compris des investissements dans ses filiales et un 茅ventuel rachat de titres existants.
Manulife Financial Corporation (MFC) hat Pl盲ne angek眉ndigt, 500 Millionen US-Dollar in nachrangigen Schuldverschreibungen mit F盲lligkeit am 23. Mai 2035 auszugeben. Die Schuldverschreibungen weisen bis zum 23. Mai 2030 einen festen Zinssatz von 3,983% auf, danach wird auf einen variablen Zinssatz von 1,32% 眉ber dem t盲glich verzinsten CORRA umgestellt. Das Angebot wird von einem von RBC Capital Markets, Scotiabank und TD Securities gemeinsam gef眉hrten Konsortium verwaltet, mit einem erwarteten Abschlussdatum am 23. Mai 2025.
Vorbehaltlich der beh枚rdlichen Genehmigung kann MFC die Schuldverschreibungen ganz oder teilweise nach dem 23. Mai 2030 zum Nennwert zuz眉glich aufgelaufener Zinsen zur眉ckzahlen. Das Unternehmen plant, die Erl枚se f眉r allgemeine Unternehmenszwecke zu verwenden, einschlie脽lich Investitionen in Tochtergesellschaften und m枚gliche R眉ckzahlung bestehender Wertpapiere.
- New $500 million debenture offering provides additional capital for corporate growth and investments
- Competitive fixed interest rate of 3.983% for the first 5 years
- Flexible redemption options after May 23, 2030 subject to regulatory approval
- Increases company's debt obligations and interest payment commitments
- Variable rate after 2030 could lead to higher interest expenses if CORRA rates rise
Insights
Manulife's $500M debenture issuance strengthens capital position with favorable 3.983% fixed rate, indicating solid market confidence despite higher-rate environment.
Manulife's announcement of a
The structure of this debt offering is particularly noteworthy. As subordinated debt, these debentures rank below senior debt but above equity in the capital structure, offering Manulife flexibility while providing investors with higher yields than senior debt. The 10-year call option beginning May 2030 (subject to regulatory approval) gives Manulife important refinancing flexibility if market conditions improve.
The "best efforts agency basis" underwriting approach suggests strong institutional interest, with RBC Capital Markets, Scotiabank, and TD Securities co-leading the syndicate - all major Canadian financial institutions with significant distribution capabilities. The stated use of proceeds for "general corporate purposes, including investment in subsidiaries and potential future redemptions of existing securities" indicates this issuance may be partially aimed at refinancing existing debt or supporting growth initiatives within the company's subsidiaries.
This transaction demonstrates Manulife's continued access to debt capital markets and ability to secure medium-term financing at reasonable rates. For a large financial institution, maintaining diverse funding sources and a well-structured debt maturity profile is essential for optimal capital management and regulatory compliance.
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The prospectus supplement, the corresponding base shelf prospectus and any amendment thereto in connection with this offering will be accessible through SEDAR+ within two business days.
The Debentures will bear interest at a fixed rate of
Subject to prior regulatory approval, MFC may redeem the Debentures, in whole or in part, on or after May 23, 2030 at a redemption price equal to par, together with accrued and unpaid interest to, but excluding, the date fixed for redemption. The Debentures will constitute subordinated indebtedness, ranking equally and rateably with all other subordinated indebtedness of MFC from time to time issued and outstanding (other than subordinated indebtedness which has been further subordinated in accordance with its terms).
The offering is being done on a best efforts agency basis by a syndicate co-led by RBC Capital Markets, Scotiabank and TD Securities. The offering is expected to close on May 23, 2025.
MFC intends to use the net proceeds from the offering of the Debentures for general corporate purposes, including investment in subsidiaries and potential future redemptions of existing securities.
The Debentures have not been and will not be registered in
Access to the prospectus supplement, the corresponding base shelf prospectus and any amendment thereto in connection with the offering of the Debentures is provided in accordance with securities legislation relating to procedures for providing access to a prospectus supplement, a base shelf prospectus and any amendment thereto. The prospectus supplement, the corresponding base shelf prospectus and any amendment thereto in connection with the offering will be accessible within two business days at . An electronic or paper copy of the prospectus supplement, the corresponding base shelf prospectus and any amendment to the documents may be obtained, without charge, from RBC Capital Markets聽by email at 迟辞谤辞苍迟辞蝉测苍诲颈肠补迟别蔼谤产肠肠尘.肠辞尘听辞谤 phone at 416-842-6311, Scotiabank聽by email at [email protected] or phone at 416-863-7438 or TD Securities by email at [email protected] or phone at 416-982-2243.
About Manulife
Manulife Financial Corporation is a leading international financial services provider, helping our customers make their decisions easier and lives better. With our global headquarters in
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Media Contact
Fiona McLean
Manulife
437-441-7491
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Investor Relations聽
Hung Ko
Manulife
416-806-9921
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