Great-West Lifeco Inc. - Subordinated Debentures - New Issue



    /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
    UNITED STATES/

    TSX:GWO

    WINNIPEG, June 14, 2007 /CNW/ - Great-West Lifeco Inc. (Lifeco) today
announced that Lifeco and an affiliated Delaware Limited Partnership,
Great-West Lifeco Finance (Delaware) LP (GWLP), have entered into an
Underwriting Agreement with a syndicate jointly led by BMO Capital Markets,
Merrill Lynch Canada and Scotia Capital for an offering by GWLP of C$1 billion
principal amount of subordinated debentures due June 21, 2067. The obligations
of GWLP under the debentures will be guaranteed by Lifeco on a subordinated
basis.
    The subordinated debentures will pay a fixed interest rate of 5.691% per
annum until 2017 and thereafter will pay a floating rate of interest equal to
the 90-day Bankers' Acceptance Rate plus 1.49%. The subordinated debentures
are redeemable at the option of GWLP on terms and conditions described in the
prospectus which was filed today by GWLP with Canadian Securities Regulators.
    The offering is expected to close on June 21, 2007. The net proceeds will
be used by GWLP to provide funding to subsidiaries of Lifeco for general
corporate purposes, including to finance the previously announced acquisition
of Putnam Investments Trust.

    The subordinated debentures have not been and will not be registered
under the U.S. Securities Act of 1933, as amended, and may not be offered or
sold in the United States absent registration or an applicable exemption from
the registration requirements. This press release shall not constitute an
offer to sell or the solicitation of an offer to buy nor shall there be any
sale of the securities in any State in which such offer, solicitation or sale
would be unlawful.

    GREAT-WEST LIFECO INC.

    Great-West Lifeco Inc. (TSX:GWO) is a financial services holding company
with interests in the life insurance, health insurance, retirement savings,
and reinsurance businesses. Lifeco has operations in Canada, the United States
and Europe through The Great-West Life Assurance Company, Great-West Life &
Annuity Insurance Company, London Life Insurance Company and The Canada Life
Assurance Company. Lifeco and its companies have more than $216 billion in
assets under administration. Great-West Lifeco is a member of the Power
Financial Corporation group of companies.





For further information:

For further information: Marlene Klassen, APR, FLMI, Director, Media &
Public Relations, (204) 946-7705


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