- Manulife Financial Corporation (MFC, Financial) to issue $500 million in subordinated debentures.
- The debentures carry a fixed interest rate of 3.983% until May 23, 2030.
- After 2030, interest switches to a floating rate of 1.32% over Daily Compounded CORRA.
Manulife Financial Corporation (MFC) has announced its intention to issue $500 million worth of subordinated debentures, with a maturity date set for May 23, 2035. These debentures will attract a fixed interest rate of 3.983% until May 23, 2030, after which the interest rate will transition to a floating rate of 1.32% over the Daily Compounded CORRA.
This offering is overseen by a syndicate led by RBC Capital Markets, Scotiabank, and TD Securities, targeting a closure date on May 23, 2025. Subject to regulatory approval, Manulife retains the option to redeem the debentures, in whole or in part, after May 23, 2030, at their par value plus any accrued interest.
The proceeds from this issuance are earmarked for general corporate purposes. This includes potential investments into subsidiaries and the redemption of existing securities, showcasing Manulife’s strategic approach to capital management. The debentures serve as subordinated debt, offering flexible capital structuring while providing investors a higher yield compared to more senior debt.
This issuance underlines Manulife's robust access to capital markets, allowing them to secure financing at competitive rates while maintaining a diverse funding approach essential for regulatory compliance and strategic growth.
