Ms. Krista Wilson reports

SUN LIFE ANNOUNCES SECOND SUSTAINABILITY BOND OFFERING

Sun Life Financial Inc. intends to issue in Canada $500-million principal amount of Series 2023-1 subordinated unsecured 5.50 per cent fixed/floating debentures due 2035. The offering is expected to close on July 4, 2023.

The debentures will represent Sun Life's second sustainability bond in Canada. An amount equivalent to the net proceeds from the offering of the debentures will be used to finance or refinance, in whole or in part, new and/or existing green or social assets that meet the eligibility criteria set out under Sun Life's sustainability bond framework.

In 2020, Sun Life won the Corporate Sustainability Bond of the Year Award from Environmental Finance for its inaugural sustainability bond offering.

In March, 2019, Sun Life published its sustainability bond framework, outlining its criteria for the bonds, which includes criteria for both green and social assets. Under social investments Sun Life considers facilities and services that contribute to the long-term health of communities including infrastructure investments for hospitals or affordable housing. In addition to projects that provide access to essential services, other eligible assets under Sun Life's Sustainability Bond Framework include investments in projects related to renewable energy, energy efficiency, green buildings, clean transportation and sustainable water management projects within Sun Life's General Account.

Sun Life's sustainability bond framework and an independent second party opinion by Sustainalytics on the framework's alignment with the International Capital Markets Association's Sustainability Bond Guidelines are available publicly on the sustainability section of Sun Life's website.

Details of the offering will be set out in a pricing supplement that the company intends to issue pursuant to its short form base shelf prospectus and its prospectus supplement, each dated March 24, 2023, all of which are or will be available on the SEDAR website for Sun Life Financial. The debentures will be sold on a best efforts agency basis by a syndicate led by TD Securities, CIBC Capital Markets and Scotiabank as co-leads. The proceeds from this offering are expected to qualify for Tier 2 capital.

About Sun Life Financial Inc.

Sun Life is a leading international financial services organization providing asset management, wealth, insurance and health solutions to individual and institutional clients. Sun Life has operations in a number of markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of March 31, 2023, Sun Life had total assets under management of $1.36-trillion.

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