Manulife Financial Corporation, a major financial services company, has announced that it will be changing the interest rate on a special type of investment it issued back in 2021. This announcement, made on June 18, 2026, affects what they call their “Limited Recourse Capital Notes Series 1.”
What Are These Special Notes?
Think of these notes like a special loan where people lend money to Manulife, and in return, Manulife pays them interest (like a reward for lending the money). Back in February 2021, Manulife borrowed $2 billion through these notes, and initially promised to pay 3.375% interest per year.
The New Interest Rate
According to the terms that were set when these notes were created, the interest rate gets adjusted every five years. For the next five-year period starting June 19, 2026 and ending June 19, 2031, the new interest rate will be 5.88300% per year. This is notably higher than the original 3.375% rate.
How did Manulife calculate this new rate? They took the current Government of Canada Yield (a baseline interest rate from government bonds) as of June 18, 2026, and added 2.839% to it. This formula was already agreed upon when the notes were first issued.
How Interest Gets Paid
People who own these notes will receive their interest payments twice a year – on June 19 and December 19. The first payment with the new interest rate will happen on December 19, 2026.
Important Details About These Notes
These notes are set to mature (meaning Manulife will pay back the original $2 billion borrowed) on June 19, 2081 – that’s 55 years from the rate reset date. However, Manulife has the option to pay back the notes early, starting in 2031 and then every five years after that, but only if they get approval from Canada’s Superintendent of Financial Institutions.
What makes these notes “limited recourse” is a special safety feature. If Manulife can’t pay the interest or the principal amount when it’s due, the people who own the notes can only claim money from specific assets held in a trust, mainly something called “Series 27 Shares.” This is different from regular loans where lenders might be able to claim other company assets.
About Manulife Financial Corporation
Manulife is a large international financial company based in Toronto, Canada. They provide financial advice, insurance, and health solutions to customers around the world. In Canada and Asia, they operate under the name Manulife, while in the United States they’re known as John Hancock.
As of the end of 2025, the company had more than 37,000 employees, over 106,000 agents, and served over 37 million customers across 25 markets worldwide. Manulife trades on multiple stock exchanges including the Toronto Stock Exchange (TSX), New York Stock Exchange (NYSE), and the Philippine Stock Exchange (PSE) under the ticker symbol ‘MFC’, and on the Hong Kong Stock Exchange under the symbol ‘945’.
Source Note:This article is based on the company’s official press release and disclosures filed with the Philippine Stock Exchange’s Electronic Disclosure Generation Technology (PSE EDGE) system. For the complete and official version of the announcement, readers may visit the PSE EDGE website and search for the company’s filing directly.
