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Canada's Manulife launches benchmark Singapore dollar Tier-2 bond at about 3.20%

BY Reuters | CORPORATE | 10:11 PM EDT

SINGAPORE, May 26 (Reuters) - Canadian insurer Manulife Financial Corp (MFC) has launched a 10-year Singapore dollar-denominated subordinated Tier-2 bond with a non-call period of five years, according to a term sheet on Tuesday.

Here are a few details:

* The initial price guidance for the offering was set at about 3.20%, according to the term sheet.

* While the exact deal size was not disclosed, the issuance is expected to be benchmark-sized, the sheet showed.

* The notes will be callable from June 4, 2031, subject to regulatory approval, and are expected to receive an A- rating by S&P Global Ratings.

* Proceeds from the bond sale will be used for general corporate purposes, including investments in subsidiaries and potential future redemptions of existing securities.

* DBS, HSBC (HSBC) and Standard Chartered (SCBFF) are the joint lead managers and bookrunners. (Reporting by Yantoultra Ngui; Editing by Sherry Jacob-Phillips)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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