Manulife Financial Corporation has announced an interest rate reset on its Limited Recourse Capital Notes Series 1, effective for the five-year period beginning June 19, 2026. The new rate will be 5.88300% per annum, as disclosed in a press release on June 18, 2026.
Details of the Interest Rate Reset
The interest rate for the $2 billion principal amount of 3.375% Limited Recourse Capital Notes Series 1 was calculated based on the sum of the Government of Canada Yield determined on June 18, 2026, plus a spread of 2.839%. Interest on the notes will continue to be paid semi-annually on June 19 and December 19 of each year, with the first payment under the new rate scheduled for December 19, 2026.
Terms and Conditions
The notes are set to mature on June 19, 2081. In conjunction with the issuance, Manulife issued 2,000,000 Non-Cumulative Fixed Rate Reset Class 1 Shares Series 27, held by Computershare Trust Company of Canada as trustee for the Manulife LRCN Limited Recourse Trust. In the event of non-payment, noteholders' recourse is limited to their proportionate share of the trust's assets, which primarily consist of Series 27 Shares.
Manulife may redeem the notes, with prior approval from the Superintendent of Financial Institutions (Canada), in whole or in part during the period from May 19 to June 19, 2031, and every five years thereafter, subject to a 15- to 60-day notice period. Redemption requires the simultaneous redemption of an equivalent face amount of Series 27 Shares.
Additional Information
The prospectus supplement dated February 12, 2021, containing further details, is available on Manulife's SEDAR+ profile at www.sedarplus.ca.
About Manulife Financial Corporation
Manulife Financial Corporation is a leading international financial services provider headquartered in Toronto, Canada. Operating as Manulife in Canada and Asia, and primarily as John Hancock in the United States, the company offers financial advice, insurance, and health solutions. Through Manulife Wealth & Asset Management, it provides global investment solutions, financial advice, and retirement plan services. As of the end of 2025, Manulife had over 37,000 employees, more than 106,000 agents, and thousands of distribution partners, serving over 37 million customers across 25 markets. The company trades as 'MFC' on the Toronto, New York, and Philippine stock exchanges, and as '945' on the Hong Kong stock exchange.
Media and Investor Contacts
Media Relations: Fiona McLean, Manulife, 437-441-7491, fiona_mclean@manulife.com
Investor Relations: Derek Theobalds, Manulife, 416-254-1774, derek_theobalds@manulife.com
SOURCE: Manulife Financial Corporation
