The first life insurance company globally
to offer a Sustainability Bond
TORONTO, Aug. 7, 2019 /CNW/ - Sun Life
Financial Inc. (TSX: SLF) (NYSE: SLF) (the "Company") announced
today that it intends to issue in Canada $750
million principal amount of Series 2019-1 Subordinated
Unsecured 2.38% Fixed/Floating Debentures due 2029 (the
"Debentures"). The offering is expected to close on August 13, 2019.
The Debentures will represent Sun Life's inaugural
sustainability bond in Canada and
marks the first issuance of a sustainability bond by a life
insurance company globally.
In March 2019, Sun Life published
its Sustainability Bond Framework, outlining its criteria for the
bonds. Distinguishing them from green bonds, Sun Life's bond and
its Sustainability Bond Framework include criteria for both green
and social assets. Potentially eligible social investments focus on
access to essential services, facilities and equipment that
contribute to the long term health of communities while delivering
excess returns to investors, such as infrastructure investments for
hospitals or childcare centers. Sun Life's Sustainability Bond
Framework and an independent second party opinion by Sustainalytics
on the framework's alignment with the International Capital Markets
Association's Sustainability Bond Guidelines1 are
available publically on Sun Life's Investor Relations website.
"We're proud to be the first life insurance company globally to
issue a sustainability bond. At Sun Life, our Purpose is to help
our Clients achieve lifetime financial security and live healthier
lives. This issuance demonstrates our commitment to embed
sustainability into our business while contributing positively to
society and advancing technologies that enable a healthier future,"
said Melissa Kennedy, Executive Vice
President, Chief Legal Officer & Executive Sponsor of
Sustainability, Sun Life. "The financial market plays a key
role in the transition to sustainable practices and we're pleased
to broaden the opportunities for sustainable investments in
Canada."
In addition to projects that provide access to essential
services, other eligible assets under Sun Life's
Sustainability Bond Framework include investments in projects
related to renewable energy, energy efficiency, green buildings,
clean transportation and sustainable water management projects
within Sun Life's General Account.
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1
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International Capital
Markets Association, "The Sustainability Bond Guidelines (SBG)
2018", published on June 14, 2018.
https://www.icmagroup.org/green-social-and-sustainability-bonds/sustainability-bond-guidelines-sbg/
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"As part of our investment process, we look at Environmental,
Social and Governance (ESG) considerations, as well as other
non-financial risks related to sustainability. For many
years, Sun Life has been a leader in strategic investments in
infrastructure projects, such as renewable energy, that enhance
community health and sustainability. Our sustainability bond
is further evidence of our commitment to living our Purpose in all
aspects of our business," said Randy
Brown, Chief Investment Officer, Sun Life.
Details of the offering will be set out in a pricing supplement
that the Company intends to issue pursuant to its short form base
shelf prospectus and its prospectus supplement, each dated
March 28, 2019, all of which are or
will be available on the SEDAR website for Sun Life Financial Inc.
at www.sedar.com. The Debentures will be sold on a best
efforts agency basis by a syndicate led by RBC Capital Markets,
CIBC Capital Markets and HSBC Securities (Canada) Inc., as co-leads. The proceeds from
this offering are expected to qualify for Tier 2 capital.
An amount equivalent to the net proceeds from the offering of
the Debentures will be used to finance or refinance, in whole or in
part, new and/or existing green or social assets that meet the
eligibility criteria set out under Sun Life's Sustainability Bond
Framework.
The Debentures have not been and will not be registered under
the United States Securities Act of 1933, as amended, and may not
be offered, sold or delivered, directly or indirectly, within
the United States of America and
its territories and possessions or to, or for the account or
benefit of, United States persons
except in certain transactions exempt from the registration
requirements of such Act. This release does not constitute an offer
to sell or a solicitation to buy such securities in the United States.
Forward-Looking Statements
From time to time, the
Company makes written or oral forward-looking statements within the
meaning of certain securities laws, including the "safe harbour"
provisions of the United States Private Securities Litigation
Reform Act of 1995 and applicable Canadian securities legislation.
Forward-looking statements contained in this news release include
statements (i) regarding the closing and use of proceeds of the
offering; (ii) that are predictive in nature or that depend upon or
refer to future events or conditions; and (iii) that include words
such as "intends", "expects", "will" and similar expressions. The
forward-looking statements in this news release are stated as at
August 7, 2019, represent the
Company's current expectations, estimates and projections regarding
future events and are not historical facts. These statements are
not a guarantee of future performance and involve assumptions and
risks and uncertainties that are difficult to predict. Some of
these assumptions and risks and uncertainties are described further
in the Company's management's discussion and analysis for the year
ended December 31, 2018 under the
heading "Forward-looking Statements", in the risk factors set out
in the Company's's annual information form for the year ended
December 31, 2018 under the heading
"Risk Factors", in the other factors detailed in the Company's's
annual and interim financial statements and in the Company's other
filings with Canadian and U.S. securities regulators, which are
available for review at www.sedar.com and www.sec.gov,
respectively. Actual results may differ materially from those
expressed, implied or forecasted in such forward-looking
statements.
The Company does not undertake any obligation to update or
revise its forward-looking statements to reflect events or
circumstances after the date of this news release or to reflect the
occurrence of unanticipated events, except as required by law.
About Sun Life
Sun Life is a leading international
financial services organization providing insurance, wealth and
asset management solutions to individual and corporate Clients. Sun
Life has operations in a number of 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 June 30,
2019, Sun Life had total assets under management of
$1,025 billion. For more information
please visit www.sunlife.com.
Sun Life Financial Inc. trades on the Toronto (TSX), New
York (NYSE) and Philippine (PSE) stock exchanges under the
ticker symbol SLF.
Note to editors: All figures in Canadian dollars
Media Relations
Contact:
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Investor Relations
Contact:
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Connie
Soave
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Leigh
Chalmers
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Director
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Senior
Vice-President, Head of Investor Relations & Capital
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Corporate
Communications
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Management
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Sun Life
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Sun Life
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t.
416-407-5721
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t.
647-256-8201
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connie.soave@sunlife.com
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Investor.relations@sunlife.com
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SOURCE Sun Life Financial Inc.