SINGAPORE — Canadian insurer Manulife Financial Corp. has launched a 10-year Singapore dollar-denominated subordinated Tier-2 bond with a non-call period of five years, according to a term sheet on Tuesday.
The initial price guidance for the offering was set at about 3.20 percent, according to the term sheet.
While the exact deal size was not disclosed, the issuance is expected to be benchmark-sized, according to the sheet.
Order books for the deal exceeded SG$1 billion ($783.15 million), including SG$30 million of interest from the joint lead managers, according to a note after the term sheet.
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, HSBC and Standard Chartered are the joint lead managers and bookrunners.
On May 13. Manulife reported an increase in profit during the first-quarter backed by strong performance in its Asia unit.
Core earnings from Asia jumped 22 percent to $598 million while global wealth and asset management rose 2 percent to CA$448 million.
“Asia achieved another strong quarter, with 22 percent growth in core earnings and 15 percent growth in new business value, reflecting robust contributions from key markets in the region,” said CEO Phil Witherington.
