2022-05-25 | TSX:IAG | Press release

/Not for distribution to U.S. news services or for circulation in United States/

QUEBEC, May 25, 2022 /CNW Telbec/ – iA Financial Corporation Inc. (there “Company“) today announced its intention to issue $250 million aggregate principal amount of 6.611% of the Series 2022-1 Limited Recourse Capital Notes (Subordinated Notes) (the “Remarks“) due June 30th2082 (the “Offer“).

The offering is expected to close on or about June 1, 2022. The Company intends to use the net proceeds from the sale of the Notes for general corporate purposes, which may include investing in subsidiaries and repaying debt.

The Notes will expire on June 30, 2082. Interest on the Notes at the rate of 6.611% per annum will be payable in semi-annual installments in arrears on June 30 and the 31st of December each year, from December 31, 2022 until June 30, 2027. From June 30, 2027 and on every fifth anniversary of that date thereafter until June 30, 2077 (each of these dates being a “Interest reset date“), the interest rate on the Notes will be reset to an annual interest rate equal to the 5-year Government of Canada Yield in effect on the business day preceding such Interest Reset Date plus 4.00%.

In connection with the issuance of the Notes, the Company will issue 250,000 Class A Preferred Shares, Series A, Non-Cumulative Rate Reset Every Five Years (the “Series A Shares“). These shares will be held by Computershare Trust Company of Canadaas trustee of a newly constituted trust (the “Limited Recourse Trust“). In the event of non-payment of interest or principal on the Notes when due, the recourse of each holder of the Notes shall be limited to such holder’s pro rata share in the assets of the Limited Recourse Trust, which assets shall be comprised of Series A Shares, except in certain limited circumstances.

Subject to the prior approval of the Autorité des marchés financiers, the Company may, on June 30, 2027 then every five years during the period from May 31st to and including June 30thredeem the Bonds, in whole or in part, upon written notice of at least 10 days and no more than 60 days from the Company, at a redemption price equal to the aggregate of the principal amount of the Bonds to be redeemed and any accrued and unpaid interest on such Notes up to the excluded redemption date.

The offering is being made to the extent possible by a syndicate of agents co-led by RBC Capital Markets, TD Securities and National Bank Capital Markets.

The Offering is being made under the Company’s short form base shelf prospectus dated April 5, 2022. Full details of the offering are set out in the dated Prospectus Supplement May 25, 2022which will be filed with the Canadian securities authorities and will be available on SEDAR at www.sedar.com and on the Company’s website at www.ia.ca.


This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities and does not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be illegal.

The Securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Law“) or the securities laws of any State of The United States of Americaand may not be offered, sold or delivered, directly or indirectly, in United States, its territories, possessions and other matters subject to its jurisdiction or to, or for the account or benefit of, US persons (as defined in Regulation S of the US Securities Act), except in certain transactions exempt or not subject to , the registration requirements of United States securities law and applicable state securities laws. This press release does not constitute an offer to sell or a solicitation of an offer to buy any of these securities in United States.

Forward-looking statements

  • This document may contain statements relating to the strategies used by iA Financial Group or statements of a predictive nature, which depend on or refer to future events or conditions, or which include words such as “may”, “will”, “could “, “should”, “should”, “suspect”, “expect”, “anticipate”, “intend”, “plan”, “believe”, “estimate”, and “continue” (or its negative form), as well as words such as “objective”, “goal”, “orientation”, “outlook” and “forecast”, or other similar words or expressions. These statements constitute forward-looking statements within the meaning of securities laws. In this document, forward-looking statements include, but are not limited to, information regarding the expected closing time of the Offering and the use of proceeds thereof. These statements are not historical facts; they only represent expectations, estimates and projections regarding future events and are subject to change.
  • Although iA Financial Group believes that the expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. In addition, certain important factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied by such statements.
    • Important factors and risks that could cause actual results to differ materially from expectations include, but are not limited to: insurance, market, credit, liquidity, strategic and operational risks, such as: general trade and economics; level of competition and consolidation; changes in laws and regulations, including tax laws and changes to capital and liquidity guidelines; risks associated with the regional or global political and social environment; risks related to climate change, including the transition to a low-carbon economy and iA Financial Group’s ability to meet the expectations of stakeholders in environmental, social and governance matters; data and cyber risks; human resources risks; hedging strategy risks; the liquidity of iA Financial Group, including the availability of financing to meet existing financial commitments on their scheduled maturity dates when required; the accuracy of information received from counterparties and the ability of counterparties to fulfill their obligations; the occurrence of natural or man-made disasters, international conflicts, pandemic diseases (such as the current COVID-19 pandemic) and acts of terrorism.
    • Important factors and assumptions used in the preparation of the financial outlook include, but are not limited to: the accuracy of accounting policies and best estimates of actuarial and economic assumptions used by the Company, such as mortality, morbidity, longevity and behavior of policyholders; different business growth rates by business unit; no unexpected material changes in the economic, competitive, insurance, legal or regulatory environment; risks and conditions; and the recent performance and results of the Company, as set forth elsewhere in this document.
  • Potential Impacts of the COVID-19 Pandemic – Since March 2020, the COVID-19 pandemic has had major and unprecedented implications for society and the economy. The overall impact of the COVID-19 pandemic is still uncertain and depends on many factors, such as the progression of the virus, the emergence of new variants, the duration of the pandemic, potential treatments and therapies, the availability of vaccines , the effectiveness of government measures aimed at slowing the spread of the virus and the impact of these measures on the economy. Therefore, we cannot accurately predict the full impact of the pandemic, but the impact on iA Financial Group’s business and financial results could be material. However, despite the short-term negative impacts of the pandemic on its results, iA Financial Group remains financially solid. In addition, iA Financial Group’s business continuity protocol continued, ensuring that the quality of service received by clients is similar or better than before the pandemic and allowing employees and advisors to continue to work in complete safety. .
  • Potential impact of geopolitical conflicts – Since February 2022, Russia military invasion of Ukraine and the resulting sanctions and economic fallout have had several impacts on global financial markets, exacerbating the volatility already present since the beginning of the year. The outlook for financial markets in the short to medium term remains highly uncertain and vulnerable, in part due to ongoing geopolitical tensions. The Company continues to monitor the potential impacts of the conflict. These impacts could adversely affect the Company’s financial outlook, results and operations.
  • Additional information about important factors that could cause actual results to differ materially from expectations and about important factors or assumptions applied in making forward-looking statements can be found in the “Risk Management” section of the MD&A for 2021. , the “Management of risks associated with financial instruments” note to the audited consolidated financial statements for the year ended December 31, 2021and elsewhere in the documents filed by iA Financial Group with the Canadian Securities Administrators, which may be consulted at sedar.com.
  • The forward-looking statements contained in this document reflect the expectations of iA Financial Group as of the date of this document. iA Financial Group undertakes no obligation to update or issue revisions to these forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unforeseen events, except as required by law. ‘required.

About iA Financial Group

iA Financial Group is one of the largest insurance and wealth management groups in the Canadawith operations in United States. Founded in 1892, it is a major Canadian public company listed on the Toronto Stock Exchange under the symbols IAG (common shares) and IAF (preferred shares).

iA Financial Group is a trade name and trademark of iA Financial Corporation Inc. and Industrial Alliance Insurance and Financial Services Inc.

SOURCE iA Financial Group

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Luisa D. Fuller