Manulife Financial Corporation has issued Climate Bonds in Singapore certified by the Climate Bonds Initiative, an investor-focused not-for-profit organization that promotes large-scale investment in the low-carbon economy.
The notes will be Manulife’s first green bond issuance under its recently released Green Bond Framework. The framework is aligned with the International Capital Market Association’s Green Bond Principles 2017, and directs the use of proceeds towards renewable energy, green buildings, sustainably-managed forests, energy efficiency, clean transport, sustainable water management and/or pollution prevention and control.
Steve Roder, Manulife’s CFO, said in a statement that being a long-term investor allows Manulife to play a role in transitioning to a more sustainable economy. “Issuing a green bond aligns our financing with our existing green investment activities,” he said.
The notes will bear interest at a fixed rate of 3% until Nov. 21, 2024 and, thereafter, at a rate of 0.832% over the then-prevailing five-year SGD Swap Rate. The notes mature on Nov. 21, 2029.
The notes will not be offered or sold, directly or indirectly, in Canada or to any resident of Canada, and will not be registered in the U.S.
Manulife may, with the prior approval of the Superintendent of Financial Institutions (Canada), redeem the notes in whole, but not in part, on Nov. 21, 2024 and on any interest payment date thereafter at a redemption price equal to par, together with accrued and unpaid interest to, but excluding, the date fixed for redemption.
Approval in principle has been obtained from the Singapore Exchange Securities Trading Limited for listing and quotation.
DBS Bank Ltd., The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch and Standard Chartered Bank have been appointed as joint lead managers for the offering.
The offering is expected to close on Nov. 21, 2017.