UPDATE 3-Canada's Manulife raises $392 million from Singapore dollar Tier-2 bond

Manulife Financial

Manulife Financial

MFC

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Updates with final deal size in headline, lead paragraph and second bullet point

By Yantoultra Ngui

SINGAPORE, May 26 (Reuters) - Canada's Manulife Financial Corp MFC.TO has raised S$500 million ($392 million) through a 10-year subordinated Tier-2 bond with a non-call period of five years at a launch yield of 2.88%, an updated term sheet showed on Tuesday.

Here are some details:

  • The final price guidance for the offering was set at 2.88%, tightening from initial price guidance of about 3.20%, according to the term sheet.

  • The deal size was set at S$500 million.

  • Order books exceeded S$1.35 billion, including S$30 million of interest from the joint lead managers, an updated note after the term sheet showed.

  • The notes will be callable from June 4, 2031, subject to regulatory approval, and are expected to receive an A- rating by S&P Global Ratings.

  • Proceeds from the bond sale will be used for general corporate purposes, including investments in subsidiaries and potential future redemptions of existing securities.

  • DBS DBSM.SI, HSBC HSBA.L, and Standard Chartered STAN.L are the joint lead managers and bookrunners.

($1 = 1.2771 Singapore dollars)


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