Sun Life Financial Inc. has set the interest rate for its $1 billion principal amount of 3.60% Limited Recourse Capital Notes Series 2021-1 (Subordinated Indebtedness) at 5.614% per annum. The new rate applies for the five-year period commencing June 30, 2026, and ending June 30, 2031. This reset was determined in accordance with the terms of the trust indenture dated June 30, 2021.

The interest rate calculation is based on the sum of the Government of Canada Yield, determined as of June 29, 2026, plus a spread of 2.604%. Interest on the notes will be payable semi-annually in arrears on June 30 and December 31 of each year, with the first payment at the new rate scheduled for December 31, 2026.

The notes are scheduled to mature on June 30, 2081. In connection with the issuance, the company issued 1,000,000 Class A Non-Cumulative Rate Reset Preferred Shares Series 14, held by Computershare Trust Company of Canada as trustee of Sun Life LRCN Trust. Recourse for noteholders is limited to their proportionate share of the trust's assets, primarily consisting of the Series 14 Shares, except in limited circumstances.

Sun Life may redeem the notes, with prior approval from the Superintendent of Financial Institutions (Canada), during the period from May 31, 2031, to June 30, 2031, and every five years thereafter. Redemption requires not less than 15 nor more than 60 days' prior notice and is contingent upon the company redeeming an equivalent aggregate face amount of Class A Shares Series 14.

The notes and Series 14 Shares were issued under a prospectus supplement dated June 24, 2021. Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE), and Philippine (PSE) stock exchanges under the ticker symbol SLF.

Key Details of the Notes

Sun Life Financial Inc. announced an offering of $750 million principal amount of Series 2026-1 Subordinated Unsecured 4.21% Fixed/Floating Debentures due 2038. The proceeds are expected to qualify for Tier 2 capital, strengthening the company's financial position. The offering is scheduled to close on June 19, 2026.

The net proceeds will be used for general corporate purposes, which may include investments in subsidiaries, repayment of indebtedness and other strategic investments. The debentures will be issued under the company's short form base shelf prospectus and prospectus supplement, both dated March 17, 2025.

A syndicate led by CIBC Capital Markets, RBC Capital Markets and TD Securities will sell the debentures on a reasonable best efforts agency basis. The securities have not been registered under the United States Securities Act of 1933 and will not be offered in the United States.

Key Details of the Offering

The offering details will be available in a pricing supplement on the SEDAR+ profile for Sun Life Financial Inc.