Sun Life Financial Inc. today announced a domestic public offering of $250 million of Class A Non-Cumulative Preferred Shares Series 5.

The shares will be priced at $25 per share and will pay non-cumulative quarterly dividends of 28.125¢ per share, yielding 4.5% annually.

Subject to regulatory approval, on or after March 31, 2012, Sun Life may redeem the shares in whole or in
part at a declining premium.

Sun Life says the shares will be perpetual preferred shares, providing it with attractive, low-cost capital. The net proceeds of the offering will be used for general business purposes.

The offering will be underwritten by a syndicate led by RBC Dominion Securities Inc., and is expected to close on February 2.