Manulife Financial Corporation announced the interest rate on its $2 billion principal amount of 3.375% Limited Recourse Capital Notes Series 1 will reset to 5.88300% per annum for the five-year period starting June 19, 2026. The new rate was calculated as the Government of Canada Yield determined on June 18, 2026, plus 2.839%. Interest will continue to be paid semi-annually on June 19 and December 19, with the first payment at the new rate on December 19, 2026. The notes, which mature on June 19, 2081, were issued alongside 2,000,000 Non-Cumulative Fixed Rate Reset Class 1 Shares Series 27 held by a limited recourse trust, and Manulife may redeem the notes during a window from May 19 to June 19, 2031, and every five years thereafter, subject to regulatory approval.
Manulife Financial CorpThe interest rate reset on Manulife's capital notes is a financial/valuation event, but the impact on the stock is unclear as higher interest costs may be offset by the notes' structure.