Manulife prices S$500M subordinated notes in Singapore
What's the deal? Manulife Financial Corporation has priced a S$500 million offering of subordinated notes in Singapore, maturing on June 4, 2036. The notes carry an interest rate of 2.880% for the first five years, after which the rate resets to 0.931% above the prevailing five-year Singapore Overnight Rate Average (SORA) OIS rate.
DBS Bank, HSBC, and Standard Chartered Bank are acting as joint lead managers and bookrunners, with Bank of China's Singapore branch serving as co-manager. The notes have received in-principle approval for listing on the Singapore Exchange Securities Trading Limited (SGX-ST).
Manulife retains the option to redeem the notes in full — but not partially — starting June 4, 2031, subject to approval from the Superintendent of Financial Institutions of Canada.
Why now? The issuance comes amid heightened demand for fixed-income securities, particularly those offering stable returns. Large corporations are leveraging debt markets to capitalise on favourable conditions, and Manulife is using this window to bolster its Tier 2 capital while tapping into Asian investor appetite.
The offering is restricted to non-US persons and will not be sold in Canada or to Canadian residents, following specific regulatory guidelines.
What could go wrong? The SGX-ST has noted it does not endorse the information disclosed by Manulife, meaning investors bear the responsibility of conducting their own due diligence. A rate reset tied to SORA also introduces uncertainty — if benchmark rates fall, holders could see lower returns after 2031.
The signal: Manulife's Singapore dollar bond signals the continued appeal of Southeast Asian capital markets for major global financial institutions. It reflects a broader trend of insurers and financial services firms diversifying their funding sources beyond home markets, using subordinated debt to strengthen capital buffers while courting a wider investor base across Asia.
Read more: third-news.com
