(Corrects the spelling of Shenzhen in the first paragraph)
HONG KONG Nov 20 Ping An Insurance (Group) Co
of China Ltd 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 capitalisation
received regulator approval on Nov. 14 this year for an issuance
plan first announced on Dec. 20, 2011.
Ping An 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)
(Reporting by Lawrence White; Editing by Christopher Cushing)