The firm will be the first life insurer to offer a green bond
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Manulife Financial is set to become the first life insurer to offer a green bond with an issuance in a major Asian market.
Manulife has announced an offering of 3.00% subordinated notes in Singapore with a principal amount of 500 million Singapore dollars due Nov. 21, 2029. The net proceeds from the offering are anticipated to qualify as Tier 2 capital.
The notes will be the first green bond issuance by a life insurance company, as well as the first green bond issuance by a Canadian issuer to be certified by the Climate Bonds Initiative. The company plans to use the proceeds to finance or re-finance assets such as renewable energy projects, green buildings, and sustainably managed forests, in accordance with its recently released Green Bond Framework aligned with the International Capital Market Association's Green Bond Principles 2017.
“As one of the world's largest life insurers, our success is linked to the long-term well-being of our customers, our employees and the communities we serve around the world,” said Manulife CFO Steve Roder. “We are also a long-term investor which puts us in a unique position to help facilitate the transition to a more sustainable economy.”
The notes will bear interest at a fixed rate of 3.00% until Nov. 21, 2024; after that, interest will be set at 0.832% over the then-prevailing five-year SGD Swap Rate. The notes mature on Nov. 21, 2029.
The Singapore Exchange Securities Trading Limited (SGX-ST) has given its approval in principle for the offering, which is expected to close on Nov. 21. The notes will not be registered in the US nor offered or sold in Canada.
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Manulife has announced an offering of 3.00% subordinated notes in Singapore with a principal amount of 500 million Singapore dollars due Nov. 21, 2029. The net proceeds from the offering are anticipated to qualify as Tier 2 capital.
The notes will be the first green bond issuance by a life insurance company, as well as the first green bond issuance by a Canadian issuer to be certified by the Climate Bonds Initiative. The company plans to use the proceeds to finance or re-finance assets such as renewable energy projects, green buildings, and sustainably managed forests, in accordance with its recently released Green Bond Framework aligned with the International Capital Market Association's Green Bond Principles 2017.
“As one of the world's largest life insurers, our success is linked to the long-term well-being of our customers, our employees and the communities we serve around the world,” said Manulife CFO Steve Roder. “We are also a long-term investor which puts us in a unique position to help facilitate the transition to a more sustainable economy.”
The notes will bear interest at a fixed rate of 3.00% until Nov. 21, 2024; after that, interest will be set at 0.832% over the then-prevailing five-year SGD Swap Rate. The notes mature on Nov. 21, 2029.
The Singapore Exchange Securities Trading Limited (SGX-ST) has given its approval in principle for the offering, which is expected to close on Nov. 21. The notes will not be registered in the US nor offered or sold in Canada.
Related stories:
TD Bank's inaugural USD green bond issuance hits US$1 billion
In green investment, it’s fight or flight
