Sun Life Financial Inc. (NYSE: SLF) announced that the interest rate on its C$1 billion principal amount of Limited Recourse Capital Notes Series 2021-1 will reset to 5.614% per annum for the five-year period beginning June 30, 2026.

The new rate applies from June 30, 2026, through June 29, 2031, and replaces the previous rate of 3.60%. The rate was calculated using the Government of Canada Yield as of June 29, 2026, plus a spread of 2.604%, in accordance with the trust indenture dated June 30, 2021.

Interest on the notes will continue to be paid semi-annually in arrears on June 30 and December 31 each year, with the first payment under the new rate scheduled for December 31, 2026.

The notes are scheduled to mature on June 30, 2081. Sun Life may redeem the notes, subject to prior written approval from Canada's Superintendent of Financial Institutions, during the period from May 31, 2031, to June 30, 2031, and every five years thereafter, with 15 to 60 days' prior notice.

The notes were originally issued alongside 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. In the event of non-payment, each noteholder's recourse is limited to a proportionate share of the trust's assets, which consist of the Series 14 Shares except in limited circumstances.