#Canada #Toronto #Financial Services #Manulife Financial #Subordinated Debenture

Manulife Financial Corporation Announces Subordinated Debenture Issue

On May 20, 2025, Manulife Financial Corporation, also identified as MFC, revealed its intentions to issue a substantial amount of $500 million in subordinated debentures. These debentures will carry a fixed/float interest rate of 3.983% and are scheduled to mature on May 23, 2035, marking a significant move in the financial sector.

Details of the Offering

The debentures will initially offer a fixed interest rate of 3.983% until May 23, 2030, post which the interest will transition to a floating rate that is pegged at 1.32% over the Daily Compounded CORRA. This structure provides a blend of stability in the first five years while also embracing the variable potential of interest rates in later years.

As part of this offering, MFC will be submitting a prospectus supplement to its existing base shelf prospectus, ensuring all necessary regulatory standards are met prior to the issuance. The offering is structured under a best-efforts agency basis, with RBC Capital Markets, Scotiabank, and TD Securities leading the syndicate.

Redemption and Ranking of Debentures

Regulatory approval will allow MFC the option to redeem these debentures wholly or partially starting May 23, 2030. The redemption price will reflect the par value plus any accrued interest up to the redemption date. These debentures qualify as subordinated indebtedness, which means they will share equal standing with other subordinated debts that MFC has issued, except for any debts that may carry a different subordination status.

Potential Uses of Proceeds

The net proceeds derived from this offering are designated for a variety of corporate purposes, including potential investments in subsidiaries or future redemptions of existing securities. This strategy aligns with MFC's focus on ensuring financial growth while maintaining its robust operational frameworks.

Regulatory and Market Context

It is important to note that these debentures will not be registered in the United States under the Securities Act of 1933, indicating that their sale is restricted from the U.S. market, which presents both limitations and protective measures regarding investor engagement. Consequently, they cannot be sold directly or indirectly to a U.S. person unless they meet specific exemption criteria set forth by regulators.

The offering is anticipated to close on May 23, 2025, pending final regulatory confirmations, and reflects MFC’s proactive approach to managing its capital structure efficiently. Access to the offering's documentation, including the prospectus and any amendments, can be conducted through SEDAR+.

About Manulife Financial Corporation

Manulife Financial Corporation is a premier international financial services company headquartered in Toronto, Canada. The firm operates under the brand Manulife in Canada, Asia, and Europe, while in the United States, it is known as John Hancock. Committed to improving the financial well-being of its clients, Manulife offers a comprehensive range of financial advice and insurance products for individuals, groups, and businesses alike. As of the end of 2024, the corporation reported a workforce of over 37,000 employees and served more than 36 million customers across 22 markets. This vision underscores Manulife’s strategy of combining investment, insurance, and other financial services to meet diverse customer needs effectively.

For further information, visit manulife.com.