Ping An Insurance to issue $4.27 billion of convertible bonds

HONG KONG Wed Nov 20, 2013 3:28am EST

A logo of Ping An Insurance is seen outside its building in Shenzhen February 5, 2013. REUTERS/Tyrone Siu

A logo of Ping An Insurance is seen outside its building in Shenzhen February 5, 2013.

Credit: Reuters/Tyrone Siu

HONG KONG (Reuters) - Ping An Insurance (Group) Co of China Ltd (601318.SS) will issue 26 billion yuan ($4.27 billion) of convertible A-share bonds, the Shenzhen-based insurer said in a stock exchange filing.

China's second-largest insurer by market capitalization received regulator approval on November 14 this year for an issuance plan first announced on December 20, 2011.

Ping An (2318.HK) said in the exchange filing on Tuesday it has appointed China International Capital Corporation Ltd and Credit Suisse Founder Securities Ltd as joint sponsors and joint lead underwriters. Goldman Sachs Gao Hua Securities, Guotai Junan Securities and JPMorgan First Capital Securities are also joint lead underwriters.

The bonds have a term of six years and pay a coupon of 0.8% in the first year, 1.0% in the second year, 1.2% in the third, 1.8% in the fourth, 2.2% in the fifth and 2.6% in the sixth.

At the end of the period, the company will redeem all bonds that investors have chosen not to convert into the company's shares at a premium of 108 percent of the nominal value.

The company's Shanghai-listed shares rose 0.4 percent on Wednesday morning, while its Hong Kong shares rose 1.5 percent.

Last month, Ping An said it more than doubled its quarterly profit in July-September as life premiums rose and returns on sagging financial markets investments improved.

($1 = 6.0927 Chinese yuan)

(This story corrects the spelling of Shenzhen in the first paragraph)

(Reporting by Lawrence White; Editing by Christopher Cushing)

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