PING An Insurance (Group) is seeking to raise US$3.5 billion through the sale of convertible bonds due in 2029, according to terms of the deal obtained by Bloomberg News.
The company is offering the bonds with a coupon at 0.375 per cent to 0.875 per cent, the terms showed.
Concurrent to the convertibles offering, the firm will conduct a share placement aimed at facilitating hedging for investors buying the bonds.
The announcement confirms a Bloomberg News report from last week.
Chinese firms have been turning to convertible bonds to raise funds at cheaper rates than traditional debt. They have been particularly popular in the tech sector – Alibaba Group Holding sold a record US$5 billion convertible bond in May.
Ping An intends to use proceeds from the offering to further develop the group’s core business and strengthen its capital position to support strategic initiatives in the health-care and elderly-care sectors, among other things, the terms showed.
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Morgan Stanley and JPMorgan Chase are joint global coordinators. BLOOMBERG
