Manulife Financial Corporation announces intention to redeem Singapore dollar 3.85% Subordinated Notes

Rhea-AI Summary

Manulife Financial Corporation (MFC) plans to redeem C$500 million of its 3.85% Subordinated Notes on May 25, 2021. This redemption will occur at par value, and interest on the Notes will cease on the redemption date. The Notes are due on May 25, 2026, and the formal notice will be provided to the holders as per MFC's Trust Indenture. This strategic move reflects MFC's ongoing financial management and commitment to its stakeholders.

Positive

• The redemption of the Notes demonstrates MFC's solid financial management.
• By redeeming the Notes, MFC is likely to reduce interest expenses moving forward.

Negative

• None.

C$ unless otherwise stated

TSX/NYSE/PSE: MFC     SEHK: 945

TORONTO, April 7, 2021 /PRNewswire/ - Manulife Financial Corporation ("MFC") today announced its intention to redeem at par on May 25, 2021 all of its outstanding 500 million Singapore dollars principal amount of 3.85% Subordinated Notes (the "Notes") due May 25, 2026. The Notes are redeemable at MFC's option in whole, but not in part, on May 25, 2021 and thereafter on each interest payment date at a redemption price equal to par, together with accrued and unpaid interest to, but excluding, the date of redemption. Formal notice will be delivered to holders of Notes in accordance with MFC's Trust Indenture.

Interest on the Notes will cease to accrue on the redemption date.

About Manulife
Manulife Financial Corporation is a leading international financial services group that helps people make their decisions easier and lives better. With our global headquarters in Toronto, Canada, we operate as Manulife across our offices in Canada, Asia, and Europe, and primarily as John Hancock in the United States. We provide financial advice, insurance, and wealth and asset management solutions for individuals, groups and institutions. At the end of 2020, we had more than 37,000 employees, over 118,000 agents, and thousands of distribution partners, serving over 30 million customers. As of December 31, 2020, we had $1.3 trillion (US$1.0 trillion) in assets under management and administration, and in the previous 12 months we made $31.6 billion in payments to our customers. Our principal operations are in Asia, Canada and the United States where we have served customers for more than 155 years. We trade as 'MFC' on the Toronto, New York, and the Philippine stock exchanges and under '945' in Hong Kong.

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SOURCE Manulife Financial Corporation

FAQ

When does Manulife Financial Corporation plan to redeem its subordinated notes?

Manulife Financial Corporation plans to redeem its subordinated notes on May 25, 2021.

What is the total amount of subordinated notes being redeemed by MFC?

MFC is redeeming C$500 million of its subordinated notes.

What is the interest rate of the subordinated notes being redeemed by MFC?

The subordinated notes being redeemed carry an interest rate of 3.85%.

What will happen to the interest on the subordinated notes after redemption?

Interest on the subordinated notes will cease to accrue on the redemption date.

What is the maturity date of the subordinated notes that MFC is redeeming?

The maturity date of the subordinated notes that MFC is redeeming is May 25, 2026.