Sun Life announces sustainability bond offering

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Toronto-based Sun Life Financial Inc. says it is the world’s first life insurer to offer a sustainability bond.

The firm announced Wednesday that it intends to issue $750 million in unsecured debentures with an interest rate of 2.38% due in 2029. The offering is expected to close Aug. 13, 2019.

The bonds will invest in both green and social assets that contribute to the long-term health of communities, Sun Life said in a release, such as infrastructure investments for hospitals or childcare centres.

“As part of our investment process, we look at environmental, social and governance considerations, as well as other non-financial risks related to sustainability,” Sun Life chief investment officer Randy Brown said in a statement.

The bonds will be sold by a syndicate led by RBC Capital Markets, CIBC Capital Markets and HSBC Securities (Canada) Inc.