Manulife Financial is set to become the first life insurer to offer a green bond with an issuance in a major Asian market.

Manulife announced it has priced an offering in Singapore of 500 million Singapore dollars principal amount of 3.00% subordinated notes due November 21, 2029. The offering will be made pursuant to an offering circular dated Nov. 14, 2017 and is anticipated to qualify as Tier 2 capital for Manulife.

The Notes will be Manulife's first green bond issuance, with an amount equal to the net proceeds intended to be used to finance or re-finance eligible assets consistent with Manulife's recently released Green Bond Framework. The Framework is aligned with the International Capital Market Association's Green Bond Principles 2017, and directs the use of proceeds towards renewable energy, green buildings, sustainably managed forests, energy efficiency, clean transport, sustainable water management and/or pollution prevention and control.

The Notes will be the first green bond issuance by a life insurance company and also the first green bond issuance by a Canadian issuer to be certified as Climate Bonds by the Climate Bonds Initiative, an investor-focused not-for-profit organization, promoting large-scale investment in the low-carbon economy.