Manulife announces intention to redeem 2.237% Fixed/Floating Subordinated Debentures

Rhea-AI Summary

Manulife Financial (MFC) has announced its plan to redeem all outstanding $1 billion worth of 2.237% Fixed/Floating Subordinated Debentures on May 12, 2025. The debentures, which were originally set to mature in May 2030, will be redeemed at par value along with any accrued and unpaid interest up to the redemption date. Interest on these debentures will stop accruing on the redemption date. The redemption is being executed under MFC's option as per the Trust Indenture, with formal notice to be provided to debenture holders.

Positive

• Early redemption of $1 billion in debt indicates strong cash position
• Potential reduction in interest expense by retiring 2.237% debentures

Negative

• Loss of long-term financing source before original 2030 maturity

C$ unless otherwise stated                                   TSX/NYSE/PSE: MFC SEHK: 945

TORONTO, April 7, 2025 /PRNewswire/ - Manulife Financial Corporation ("MFC") today announced its intention to redeem at par on May 12, 2025 all of its outstanding $1,000,000,000 principal amount of 2.237% Fixed/Floating Subordinated Debentures (the "Debentures") due May 12, 2030. The Debentures are redeemable at MFC's option on or after May 12,  2025 at a redemption price per Debenture equal to par, together with accrued and unpaid interest to but excluding the date of redemption. Formal notice will be delivered to holders of Debentures in accordance with MFC's Trust Indenture.

Interest on the Debentures will cease to accrue on the redemption date.

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 Toronto, Canada, we operate as Manulife across Canada, Asia, and Europe, and primarily as John Hancock in the United States, providing financial advice and insurance for individuals, groups and businesses. Through Manulife Wealth & Asset Management, we offer global investment, financial advice, and retirement plan services to individuals, institutions, and retirement plan members worldwide. At the end of 2024, we had more than 37,000 employees, over 109,000 agents, and thousands of distribution partners, serving over 36 million customers. We trade as 'MFC' on the Toronto, New York, and the Philippine stock exchanges, and under '945' in Hong Kong.

Not all offerings are available in all jurisdictions. For additional information, please visit manulife.com. 

Media Contact
Fiona McLean
Manulife
437-441-7491
fiona_mclean@manulife.com

Investor Relations
Hung Ko
Manulife
416-806-9921
hung_ko@manulife.com 

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SOURCE Manulife Financial Corporation

FAQ

What is the total value of MFC debentures being redeemed in May 2025?

Manulife Financial is redeeming $1 billion worth of 2.237% Fixed/Floating Subordinated Debentures.

When will MFC's 2.237% Fixed/Floating Subordinated Debentures stop accruing interest?

Interest on the debentures will cease to accrue on May 12, 2025, which is the redemption date.

What is the redemption price for MFC's 2.237% Fixed/Floating Subordinated Debentures?

The debentures will be redeemed at par value plus any accrued and unpaid interest up to the redemption date.

When were MFC's 2.237% Fixed/Floating Subordinated Debentures originally scheduled to mature?

The debentures were originally scheduled to mature on May 12, 2030.