Man­ulife ar­ranges $500M (Sin­ga­pore) note of­fer­ing

Stockwatch Daily - - FINANCE - Mr. Steve Roder re­ports

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.

Note:

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.

Rona Am­brose, Joseph Peter Caron, John Michael Cas­sa­day, Su­san Fay Dabarno, Richard B DeWolfe, Sheila Sarah Mar­garet Fraser, Don­ald Arthur Gu­loien, Luther Sher­man Helms, Tsun-yan Hsieh, Paul Thomas Jenk­ins, Pamela Kim­met, Don­ald Richard Lind­say, John Ralph Ver­non Palmer, Claude James Prieur, An­drea Sarah Rosen, Les­ley Daniels Web­ster

(MFC) Shares: 1,978,561,550

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