Long-Term Debt

12 Months Ended

Dec. 31, 2023

Note 10 Long-Term Debt

(a) Carrying value of long-term debt instruments


As at December 31,	Issue date	Maturity date	Par value	2023		2022
3.050% Senior notes (1),(2)	August 27, 2020	August 27, 2060	US$ 1,155	$	1,519	$	1,559
5.375% Senior notes (1),(3)	March 4, 2016	March 4, 2046	US$ 750		977		1,004
3.703% Senior notes (1),(4)	March 16, 2022	March 16, 2032	US$ 750		983		1,011
2.396% Senior notes (1),(5)	June 1, 2020	June 1, 2027	US$ 200		263		270
2.484% Senior notes (1),(5)	May 19, 2020	May 19, 2027	US$ 500		657		674
3.527% Senior notes (1),(3)	December 2, 2016	December 2, 2026	US$ 270		356		365
4.150% Senior notes (1),(3)	March 4, 2016	March 4, 2026	US$ 1,000		1,316		1,351
Total				$	6,071	$	6,234

(1)	These U.S. dollar senior notes have been designated as hedges of the Company’s net investment in its U.S. operations which reduces the earnings volatility that would otherwise arise from the re-measurement of these senior notes into Canadian dollars.

(2)	MFC may redeem the notes in whole, but not in part, on August 27, 2025, and thereafter on every August 27 at a redemption price equal to par, together with accrued and unpaid interest. Issuance costs are amortized to the earliest par redemption date.

(3)

MFC may redeem the senior notes in whole or in part, at any time, at a redemption price equal to the greater of par and a price based on the yield of a comparable U.S. Treasury bond with a tenor approximately equal to the period, from the redemption date to the respective maturity date, plus a specified number of basis points, together with accrued and unpaid interest. The specified number of basis points is as follows:

5.375% -

bps, 3.527% -

bps, and 4.150% -

bps.

Issuance costs are amortized over the term of the debt.

(4)

MFC may redeem the senior notes in whole or in part, at any time, at a redemption price equal to the greater of par and a price based on the yield of a comparable U.S. Treasury bond with a tenor approximately equal to the period, from the redemption date to December 16, 2031, plus 25 bps, together with accrued and unpaid interest. Issuance costs are amortized over the term of the debt.

(5)

MFC may redeem the senior notes in whole or in part, at any time, at a redemption price equal to the greater of par and a price based on the yield of a comparable U.S. Treasury bond with a tenor approximately equal to the period, from the redemption date to two months before the respective maturity date, plus a specified number of basis points, together with accrued and unpaid interest. The specified number of basis points is as follows:

2.396% -

bps, and 2.484% -

bps.

For the period from two months before the respective maturity date, MFC may redeem the senior notes, in whole or in part, at a redemption price equal to par, together with accrued and unpaid interest. Issuance costs are amortized over the term of the debt.

The

cash amount of interest paid on long-term debt during the year ended December 31, 2023

was $231 (2022 – $204).

(b) Fair value measurement

Fair value of long-term debt instruments is determined using the following hierarchy:

Level 1 – Fair value is determined using quoted market prices where available.

Level 2 – When quoted market prices are not available, fair value is determined with reference to quoted prices of similar debt instruments or estimated using discounted cash flows based on observable market rates.

The Company measures long-term debt at amortized cost in the Consolidated Statements of Financial Position. As at December 31, 2023, the fair value of long-term debt was $5,525 (2022 – $5,587). Fair value of long-term debt was determined using Level 2 valuation techniques (2022 – Level 2).


As at December 31,	Less than 1 year		1 to 3 years		3 to 5 years		Over 5 years		Total
2023	$	–	$	1,672	$	920	$	3,479	$	6,071
2022		–		–		2,661		3,573		6,234