Sun Life Financial Inc. intends to issue its first sustainability bond in Canada.
The company will offer C$750 million of series 2019-1 subordinated unsecured 2.38% fixed/floating debentures due 2029.
Sun Life said this would mark the first issuance of a sustainability bond by a life insurance company globally. The offering is expected to close Aug. 13.
Proceeds are expected to qualify for Tier 2 capital. Net proceeds will be used to finance or refinance, in whole or in part, new and/or existing green or social assets that meet the eligibility criteria set out under Sun Life's sustainability bond framework.
The debentures will be sold on a best-efforts agency basis by a syndicate led by RBC Capital Markets, CIBC Capital Markets and HSBC Securities (Canada) Inc. as co-leads.