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FOR IMMEDIATE RELEASE
OLDWICK - NOVEMBER 16, 2017 01:48 PM (EST)
A.M. Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “bbb+” to the forthcoming Singapore Dollar (SGD) 500 million 3.00% subordinated notes due Nov. 21, 2029, of Manulife Financial Corporation (MFC) (Toronto, Canada). The outlook assigned to the Credit Rating (rating) is stable.
The proceeds from the offering, which is anticipated to qualify as Tier 2 capital for Manulife, will be utilized for financing or refinancing of new and/or existing eligible assets that comply with the Manulife Green Bond Framework (framework). The framework specifies that the proceeds are allocated toward green assets, which include but are not limited to renewable energy, green buildings, sustainable management of natural resources, energy efficiency, clean transportation, sustainable water management, and pollution prevention and control. MFC may redeem the debentures on or after Nov. 21, 2024, at which time the coupon rate transitions to 0.832% over the then-prevailing five-year SGD swap rate. Despite the new issuance, MFC’s financial leverage remains within the range that supports the company’s current Long-Term IRs.
MFC reported net income attributed to shareholders of CAD 1,105 million for third-quarter 2017, based on International Financial Reporting Standards. The positive financial results for the quarter are due to solid core earnings, growth in the company’s Asia and global wealth & asset management businesses and strong investment-related experience.
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