Manulife moves to raise $1 billion of capital

Manulife Financial has announced that Manulife Financial Capital Trust II will be issuing $1 billion of its Series 1 notes.
Manulife Financial Capital Trust II is a trust wholly owned by The Manufacturers Life Insurance Company, a release says.
The transaction is expected to close on July 10, 2009.
The net proceeds will be used by Manulife Financial to “acquire liquid assets for possible future retirement of amounts outstanding under Manulife Financial Corporation’s credit facility or for general corporate purposes,” the release says.
The offering is not expected to initially result in an increase to Manufacturers Life Insurance reported minimum capital and surplus requirements for life insurance companies, it adds.
Interest on the notes is payable semi-annually and will be fixed at 7.405% per annum. Starting on Dec. 31, 2019, and on every fifth anniversary after such date, the rate of interest on the notes will be reset.