The Canadian Press

Sun Life Financial Inc. (TSX:SLF) announced Tuesday that it is issuing $500 million in long-term securities notes to boost capital and invest in subsidiaries.

The insurance company said interest would be payable semi-annually at an annual rate of 5.86% until Dec. 31, 2019, when the rate will be reset every five years until Dec. 31, 2108.

In some cases, the notes may be automatically exchanged for a series of Sun Life Assurance preferred shares, and in other circumstances, a series of preferred shares may be issued in lieu of interest.

Sun Life may, at its option and subject to certain conditions, redeem the notes in whole or in part on or after Dec. 31, 2014, the company said making the announcement.

The notes are expected to qualify as regulatory capital of Sun Life Assurance.

The issuance is underwritten by a syndicate led by Scotia Capital Inc. and RBC Dominion Securities Inc., and is expected to close Nov. 20.

Sun Life shares were down 8ยข at $28.22 Tuesday on the Toronto Stock Exchange.