Ms. Alessandra Nigro reports

SUN LIFE ANNOUNCES THIRD SUSTAINABILITY BOND OFFERING

Sun Life Financial Inc. intends to issue in Canada $750-million principal amount of Series 2024-1 subordinated unsecured 5.12 per cent fixed/floating debentures due 2036. The offering is expected to close on May 15, 2024.

The debentures will represent Sun Life's third offering of sustainability bonds in Canada. An amount equal to the net proceeds from the offering of the debentures will be used to finance or refinance, in whole or in part, green and social assets within the company's general account that meet the eligibility criteria set out under Sun Life's 2024 sustainability bond framework.

Sun Life completed its inaugural sustainability bond offering in 2019. As part of the company's focus on sustainable investing, Sun Life manages general account assets with material environmental, social and governance factors embedded in its investment processes. In addition, Sun Life invests general account assets in ways that support a low carbon and more inclusive society.

In April, 2024, Sun Life published its updated sustainability bond framework, outlining its criteria for sustainability bonds, which include criteria for both green and social assets. The updated sustainability bond framework includes additional eligible green and social categories such as affordable housing and affordable basic infrastructure. Under social investments, Sun Life considers facilities and services that contribute to the long-term health of communities, including investments in hospitals, long-term care and emergency shelters, and projects that support socio-economic advancement and empowerment, among others. Eligible green 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 and waste water management, among others.

Sun Life's sustainability bond framework and an independent second party opinion by Morningstar Sustainalytics on the framework's alignment with the International Capital Markets Association's Sustainability Bond Guidelines, Green Bond Principles and Social Bond Principles are available publicly in 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+ profile for Sun Life. The debentures will be sold on a best effort agency basis by a syndicate led by RBC Capital Markets, BMO Capital Markets and Scotiabank as co-lead agents. 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 service 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, 2024, Sun Life had total assets under management of $1.47-trillion.

Sun Life trades on the Toronto, New York and Philippine stock exchanges under the ticker symbol SLF.

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