MANULIFE Financial Corp., through its Canadian subsidiary The Manufacturers Life Insurance Co. (MLI), has raised $1 billion from its recently completed issue of subordinated debentures.
In a disclosure to the Philippine Stock Exchange (PSE), Manulife said the 12-year debentures will carry a fixed interest rate of 3.181 percent until November 22, 2022 and will bear a rate of 1.57 percent thereafter toward their maturity date on November 22, 2027.
The debt notes were offered through a syndicate of dealers co-led by RBC Capital Markets, BMO Capital Markets and Scotiabank Global Banking and Markets.
Manulife said the debentures will constitute subordinated indebtedness, ranking equally and rateably with all other subordinated indebtedness of MLI issued and outstanding.
Unlike bonds, debentures are securities sold by companies usually to fund acquisitions and are set for short-term maturity. The issuance of debentures is not asset-backed or secured by any collateral but only by the credit of the issuer.
MLI intends to use the net proceeds from the offering for general corporate purposes, including future refinancing requirements.
Canada-based Manulife is traded as “MFC” on three exchanges: the Toronto, New York, and the Philippine stock exchanges, while listed under “945” in Hong Kong.
As of end-September, the Manulife group has 888 billion Canadian dollars ($663 billion or P31.31 trillion) of assets under management and administration across Asia, Canada and the United States.
At the end of 2014, the company had 28,000 employees, 58,000 agents, and thousands of distribution partners, serving 20 million customers.
Manulife is a leading international financial services group providing financial advice, insurance and wealth and asset management solutions for individuals, groups and