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, dopodiché passeranno a un tasso variabile pari all'1,32% sopra il CORRA composto giornalmente. L'offerta è 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 potrà rimborsare le debentures in tutto o in parte dopo il 23 maggio 2030 al valore nominale più gli interessi maturati. La società 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 dólares en debentures subordinados con vencimiento el 23 de mayo de 2035. Los debentures tendrán una tasa de interés fija del 3,983% hasta el 23 de mayo de 2030, tras lo cual cambiarán a una tasa variable del 1,32% sobre el CORRA compuesto diariamente. La oferta está 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 aprobación regulatoria, MFC podrá redimir los debentures total o parcialmente después del 23 de mayo de 2030 al valor nominal más los intereses acumulados. La empresa planea usar los fondos para propósitos corporativos generales, incluyendo inversiones en subsidiarias y posible redención de valores existentes.
Manulife Financial Corporation (MFC)는 2035년 5월 23일 만기인 5억 달러 규모의 후순위 채권 발행 계획을 발표했습니다. 이 채권은 2030년 5월 23일까지 3.983%의 고정 이자율이 적용되며, 이후에는 일일 복리 CORRA에 1.32%를 더한 변동 금리로 전환됩니다. 이번 발행은 RBC Capital Markets, Scotiabank, TD Securities가 공동 주관하는 신디케이트가 관리하며, 마감 예정일은 2025년 5월 23일입니다.
규제 승인에 따라 MFC는 2030년 5월 23일 이후에 채권을 전부 또는 일부를 액면가와 미지급 이자와 함께 상환할 수 있습니다. 회사는 자금을 자회사 투자 및 기존 증권 상환 가능성을 포함한 일반 기업 목적에 사용할 계획입니다.
Manulife Financial Corporation (MFC) a annoncé son intention d’émettre 500 millions de dollars en débentures subordonnées arrivant à échéance le 23 mai 2035. Ces débentures offriront un taux d’intérêt fixe de 3,983% jusqu’au 23 mai 2030, après quoi elles passeront à un taux variable de 1,32% au-dessus du CORRA composé quotidiennement. L’émission est gérée par un syndicat co-dirigé par RBC Capital Markets, Scotiabank et TD Securities, avec une clôture prévue pour le 23 mai 2025.
Sous réserve de l’approbation réglementaire, MFC pourra racheter tout ou partie des débentures après le 23 mai 2030 à leur valeur nominale plus les intérêts courus. La société prévoit d’utiliser les fonds pour des besoins généraux d’entreprise, y compris des investissements dans ses filiales et un éventuel rachat de titres existants.
Manulife Financial Corporation (MFC) hat Pläne angekündigt, 500 Millionen US-Dollar in nachrangigen Schuldverschreibungen mit Fälligkeit 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% über dem täglich verzinsten CORRA umgestellt. Das Angebot wird von einem von RBC Capital Markets, Scotiabank und TD Securities gemeinsam geführten Konsortium verwaltet, mit einem erwarteten Abschlussdatum am 23. Mai 2025.
Vorbehaltlich der behördlichen Genehmigung kann MFC die Schuldverschreibungen ganz oder teilweise nach dem 23. Mai 2030 zum Nennwert zuzüglich aufgelaufener Zinsen zurückzahlen. Das Unternehmen plant, die Erlöse für allgemeine Unternehmenszwecke zu verwenden, einschließlich Investitionen in Tochtergesellschaften und mögliche Rückzahlung 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 $500M debenture issuance strengthens capital position with favorable 3.983% fixed rate, indicating solid market confidence despite higher-rate environment.
Manulife's announcement of a
The structure of this debt offering is particularly noteworthy. As subordinated debt, these debentures rank below senior debt but above equity in the capital structure, offering Manulife flexibility while providing investors with higher yields than senior debt. The 10-year call option beginning May 2030 (subject to regulatory approval) gives Manulife important refinancing flexibility if market conditions improve.
The "best efforts agency basis" underwriting approach suggests strong institutional interest, with RBC Capital Markets, Scotiabank, and TD Securities co-leading the syndicate - all major Canadian financial institutions with significant distribution capabilities. The stated use of proceeds for "general corporate purposes, including investment in subsidiaries and potential future redemptions of existing securities" indicates this issuance may be partially aimed at refinancing existing debt or supporting growth initiatives within the company's subsidiaries.
This transaction demonstrates Manulife's continued access to debt capital markets and ability to secure medium-term financing at reasonable rates. For a large financial institution, maintaining diverse funding sources and a well-structured debt maturity profile is essential for optimal capital management and regulatory compliance.
C$ unless otherwise stated TSX/NYSE/PSE: MFC SEHK: 945
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 www.sedarplus.ca. 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 by email at torontosyndicate@rbccm.com or phone at 416-842-6311, Scotiabank by email at syndicate.toronto@scotiabank.com or phone at 416-863-7438 or TD Securities by email at TDCAN-Syndicate@tdsecurities.com 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
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
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