Manulife continues Singapore sub debt spree

Canadian financial services company Manulife Financial became the first foreign insurance company to issue Tier 2 debt on Monday after it raised S$500 million $364 million from a 10-year non-call five-year transaction. 

The deal starts the new week with a bang and follows last week's a string of bank capital issues from National Australia Bank, Societe Generale and United Overseas Bank. According to RHB Securities issuers have raised a total of S$10.2 billion so far this year from Basel III-compliant bank capital transactions. 

Some investors had been urging restraint, worried that too much supply will hurt secondary prices. But the response to Manulife's...