Manulife arranges $500M (Singapore) note offering
MANULIFE FINANCIAL Corp. has priced an offering in Singapore of $500-million (Singapore) principal amount of 3.00 per cent subordinated notes due Nov. 21, 2029. The offering will be made pursuant to an offering circular dated Nov. 14, 2017, and is anticipated to qualify as Tier 2 capital for Manulife.
The notes will be Manulife’s first green bond issuance, with an amount equal to the net proceeds intended to be used to finance or refinance, in part or in full, new and/or existing eligible assets consistent with Manulife’s recently released green bond framework (1). The framework is aligned with the International Capital Market Association’s Green Bond Principles 2017 and directs the use of proceeds toward renewable energy, green buildings, sustainably managed forests, energy efficiency, clean transport, sustainable water management, and/or pollution prevention and control.
The notes will be the first green bond issuance by a life insurance company and also the first green bond issuance by a Canadian issuer to be certified as climate bonds by the Climate Bonds Initiative, an investor-focused not-forprofit organization promoting large-scale investment in the low-carbon economy.
“As one of the world’s largest life insurers, our success is linked to the long-term well-being of our customers, our employees and the communities we serve around the world,” said Steve Roder, Manulife’s chief financial officer. “We are also a long-term investor, which puts us in a unique position to help facilitate the transition to a more sustainable economy. Issuing a green bond aligns our financing with our existing green investment activities.”
Manulife and its subsidiaries are signatories to several international sustainability initiatives, including Accounting for Sustainability, the United Nations Environment Program Finance Initiative, the Equator Principles and the United Nations-supported Principles for Responsible Investment.
The notes will bear interest at a fixed rate of 3.00 per cent until Nov. 21, 2024, and thereafter at a rate of 0.832 per cent over the then-pre-
vailing five-year Singapore dollar swap rate. The notes mature on Nov. 21, 2029.
Manulife may, with the prior approval of the Superintendent of Financial Institutions (Canada), redeem the notes in whole, but not in part, on Nov. 21, 2024, and on any interest payment date thereafter at a redemption price equal to par, together with accrued and unpaid interest to, but excluding, the date fixed for redemption. The notes will constitute subordinated indebtedness, ranking equally and rateably with all other subordinated indebtedness of Manulife from time to time issued and outstanding.
Approval in principle has been obtained from the Singapore Exchange Securities Trading Ltd. (SGX-ST) for the listing and quotation of the notes. The SGX-ST assumes no responsibility for the correctness of any statements made or opinions expressed or reports contained herein. Admission to the official list of the SGX-ST and quotation of the notes on the SGX-ST is not to be taken as an indication of the merits of Manulife or the notes.
DBS Bank Ltd., the Hongkong and Shanghai Banking Corp. Ltd., Singapore branch, and Standard Chartered Bank have been appointed as joint lead managers for the offering.
The offering is expected to close on Nov. 21, 2017.
The notes will not be offered or sold, directly or indirectly, in Canada or to any resident of Canada.
1. The Manulife green bond framework is available on Manulife’s website. About Manulife Financial Corp.
Manulife is a leading international financial services group that helps people achieve their dreams and aspirations by putting customers’ needs first and providing the right advice and solutions. Manulife operates primarily as John Hancock in the United States and Manulife elsewhere. At the end of 2016, Manulife had approximately 35,000 employees, 70,000 agents and thousands of distribution partners, serving more than 22 million customers. As of Sept. 30, 2017, Manulife had over $1-trillion ($806-billion (U.S.)) in assets under management and administration, and in the previous 12 months it made $27.1-billion in payments to its customers.
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