Manulife Financial Capital Trust II has completed a $1 billion offering of notes to boost the company’s Tier 1 capital levels, Manulife announced on Friday.

The trust, which is wholly-owned by the Manufacturers Life Insurance Company, has completed its offering of Manulife Financial Capital Trust II Notes – Series 1 due December 31, 2108. The notes qualify as Tier 1 capital of MLI for regulatory purposes, according to Manulife.

“This adds both capital and flexibility to our corporate structure, moving us closer towards our goal of establishing fortress levels of capital,” said Donald Guloien, president and CEO of Manulife.

The offering was underwritten by a syndicate of investment dealers led by RBC Capital Markets and National Bank Financial.

The notes pay an annual rate of interest of 7.405%, payable semi-annually.