Sun Life Announces $1 Billion Subordinated Unsecured Debenture Offering for General Corporate Purposes

Sun Life Financial Inc. announced an offering of $1 billion principal amount of Series 2025-1 Subordinated Unsecured 4.14% Fixed/Floating Debentures due 2037. The net proceeds will be used for general corporate purposes, which may include supporting the acquisition of the Company's remaining interests in BentallGreenOak and Crescent Capital Group LP, investments in subsidiaries, repayment of indebtedness, and other strategic investments. The offering is expected to close on September 11, 2025.

Sun Life Financial Inc. (TSX: SLF) (NYSE: SLF) has announced its intention to issue $1 billion in Series 2025-1 Subordinated Unsecured 4.14% Fixed/Floating Debentures due in 2037. The offering is expected to close on September 11, 2025, and the net proceeds will be used for general corporate purposes, including supporting the acquisition of the company's remaining interests in BentallGreenOak and Crescent Capital Group LP, investments in subsidiaries, repayment of indebtedness, and other strategic investments Sun Life announces offering of Subordinated Unsecured ...^[2].

The debentures will be sold on a reasonable best efforts agency basis by a syndicate led by RBC Capital Markets, CIBC Capital Markets, and TD Securities, as co-leads. The proceeds from this offering are expected to qualify for Tier 2 capital. 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 Sun Life announces offering of Subordinated Unsecured ...^[2].

This announcement follows Sun Life Financial's 2024 results, which demonstrated resilience in navigating market volatility through geographic diversification and AI-driven modernization. The company reported a 2% year-over-year decline in Q4 underlying net income to $965 million, with Asia and Canada delivering 17% and 6% net income growth, respectively, while the U.S. health insurance and Vietnamese markets faced significant losses due to morbidity trends and regulatory shifts Sun Life's Strategic Resilience and AI-Driven Growth in a Volatile Market^[1].

Sun Life's strategic resilience balances short-term regional risks with innovation-driven growth. The company's strong capital position, reflected in a 152% LICAT ratio, provides a buffer against volatility and positions it to capitalize on long-term opportunities. The company's AI initiatives, such as Sun Life Asks and cloud platforms like SAP and AWS, have enhanced operational efficiency and positioned the insurer for long-term digital competitiveness Sun Life's Strategic Resilience and AI-Driven Growth in a Volatile Market^[1].

For investors, the key takeaway from this announcement is Sun Life's commitment to long-term growth and strategic investments. The issuance of debentures aligns with the company's broader strategy of balancing short-term resilience with long-term digital transformation. The proceeds from this offering will support the company's continued investment in strategic initiatives and acquisitions, further enhancing its competitive position in the volatile financial services landscape.

References:
Sun Life's Strategic Resilience and AI-Driven Growth in a Volatile Market^[1] Sun Life Reports Fourth Quarter and Full Year 2024 Results [https://www.newswire.ca/news-releases/sun-life-reports-fourth-quarter-and-full-year-2024-results-823729716.html]
Sun Life announces offering of Subordinated Unsecured ...^[2] Sun Life Announces Offering of Subordinated Unsecured Debentures [https://www.newswire.ca/news-releases/sun-life-announces-offering-of-subordinated-unsecured-debentures-857107705.html]