Canadian insurer Manulife Financial Corp (MFC) has finalised pricing on a Singapore dollar-denominated subordinated Tier-2 bond, setting the yield at 2.88% after strong demand from investors.
The 10-year bond carries a non-call period of five years, meaning Manulife cannot redeem the notes before June 4, 2031, subject to regulatory approval from relevant authorities.
Final price guidance came in at 2.88%, a notable tightening from the initial guidance of approximately 3.20% that was circulated to investors ahead of the book-building process.
The tightening of roughly 32 basis points reflects the level of investor appetite the offering attracted across the duration of the order-gathering period in Singapore.
Order books for the transaction exceeded S$1.35 billion, equivalent to approximately $1.06 billion, according to an updated note released alongside the final term sheet on Tuesday.
That figure includes S$30 million of interest attributed to the joint lead managers, who participated alongside external investors during the bookrunning process.
S&P Global Ratings is expected to assign the notes an A- credit rating, placing the instrument within investment-grade territory and reflecting the financial strength of the issuing group.
Manulife intends to use the proceeds from the bond sale for general corporate purposes, which include investments in subsidiaries and potential future redemptions of existing securities.
DBS, HSBC (HSBA), and Standard Chartered (STAN) are acting as joint lead managers and bookrunners on the transaction, bringing together three major financial institutions active across Asian debt capital markets.
The deal represents Manulife’s continued engagement with Asian capital markets, where the company has maintained a significant operational and financial presence through its regional insurance and wealth management businesses.
Manulife operates across Canada, the United States, and Asia under both the Manulife and John Hancock brands, serving millions of customers through its diversified financial services platform.
The Singapore dollar bond market has seen steady activity from International issuers seeking to diversify their funding bases and tap into the city-state’s deep institutional investor community.
Tier-2 capital instruments such as this bond count toward an insurer’s regulatory capital requirements, providing financial flexibility while offering investors a fixed-income product with defined call and maturity features.