Singapore insurance and financial services company Singlife and MUFG Bank have completed of a S$550 million ( US$434.05 million ) bilateral financing facility, one of the largest transactions in Singapore’s insurance sector to date.

MUFG acted as Singlife’s sole capital structure adviser and exclusive financier, the bank says, delivering a customized Singapore dollar-denominated financing solution tailored for the insurer’s capital management objectives.

Proceeds from the facility will be used to redeem S$550 million of subordinated notes, supporting the optimization of the insurer’s capital structure.

Singlife undertook a comprehensive review of its capital structure after its acquisition by Sumitomo Life. The review focused on preserving capital strength, optimizing balance sheet efficiency, maintaining credit ratings strength and ensuring long-term funding certainty amid a volatile interest rate environment.

Working closely with MUFG, the insurer, it points out, assessed multiple refinancing and capital structure alternatives that provided pricing stability, execution certainty and alignment with its group profile.

“For Singlife, the refinancing reflects a proactive and disciplined approach to capital management, reinforcing our emphasis on financial resilience and sustainable long-term growth,” says Sumit Behl, the insurer’s chief financial officer. “The transaction supports our capital and funding profile in line with our ratings considerations and long-term financial strategy.”

Danny Fischer, the bank’s managing director and head of solutions for Asia-Pacific, adds: “By combining structuring expertise, balance sheet capacity and disciplined risk management, MUFG worked closely with Singlife to deliver an integrated, seamless solution, aligned with their capital objectives and refinancing timeline.”