Sun Life Financial Inc. (TSX: SLF) (NYSE: SLF) announced on June 29, 2026, that the interest rate on its $1 billion principal amount of 3.60% Limited Recourse Capital Notes Series 2021-1 (Subordinated Indebtedness) will reset to 5.614% per annum for the five-year period beginning June 30, 2026.
Interest Rate Calculation and Payment Schedule
The new rate was determined in accordance with the trust indenture dated June 30, 2021. It is calculated as the sum of the Government of Canada Yield as of June 29, 2026, plus 2.604%. Interest on the Notes will continue to be paid semi-annually in arrears on June 30 and December 31 of each year, with the first payment at the new rate due on December 31, 2026.
The Notes are scheduled to mature on June 30, 2081. In connection with the issuance, Sun Life issued 1,000,000 Class A Non-Cumulative Rate Reset Preferred Shares Series 14, held by Computershare Trust Company of Canada as trustee of Sun Life LRCN Trust. In the event of non-payment of interest or principal when due, noteholders' recourse is limited to their proportionate share of the trust's assets, which consist of Series 14 Shares except in limited circumstances.
Redemption Terms and Regulatory Approval
Sun Life may redeem the Notes, with prior written approval from the Superintendent of Financial Institutions (Canada), in whole or in part during the period from May 31, 2031, to June 30, 2031, and every five years thereafter. Redemption requires at least 15 and no more than 60 days' notice and is contingent on the redemption of an equal aggregate face amount of Class A Shares Series 14.
The Notes and Series 14 Shares were originally issued under a prospectus supplement dated June 24, 2021, which is available on Sun Life's SEDAR+ profile.
About Sun Life Financial Inc.
Sun Life is a leading international financial services organization offering asset management, wealth, insurance, and health solutions to individual and institutional clients. The company operates in multiple markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia, and Bermuda. As of March 31, 2026, Sun Life reported total assets under management of $1.58 trillion.
Sun Life Financial Inc. trades on the Toronto Stock Exchange (TSX), New York Stock Exchange (NYSE), and Philippine Stock Exchange (PSE) under the ticker symbol SLF. All figures are in Canadian dollars unless otherwise noted.
