Date Closed

December 14, 2011

Lead Office

Toronto

Value

250.00 Million CAD

On December 14, 2011, Industrial Alliance Insurance and Financial Services Inc. ("Industrial Alliance" or the "Company") announced the closing of its previously announced offering of C$250 million principal amount of 4.75% fixed/floating subordinated debentures due December 14, 2021 (the "Debentures").

The Debentures bear interest at a fixed annual rate of 4.75% for the first five years, payable semi-annually, and a variable annual rate equal to the 3-month Canadian Dollar Offered Rate (CDOR) plus 3.20% for the last five years, payable quarterly. Subject to prior regulatory approval, Industrial Alliance may redeem the Debentures, in whole or in part, on or after December 14, 2016. The Debentures have been rated "A" with a stable trend by DBRS Limited and "A" by Standard & Poor’s.

The Debentures were offered through a syndicate of dealers co-led by RBC Capital Markets and TD Securities and consisting of BMO Capital Markets, Scotia Capital, CIBC World Markets, National Bank Financial, Casgrain & Company and Industrial Alliance Securities.

Industrial Alliance, headquartered in Québec City, Québec, is a life and health insurance company.

McCarthy Tétrault LLP represented the syndicate of dealers, with a team led by Barry Ryan.