China’s Ping An raises US$1.5 billion from convertible bonds to fund growth
The notes will not bear interest throughout the five-year term and can be converted into Hong Kong-traded shares at HK$55.02 each
Ping An Insurance (Group), China’s largest insurer by market capitalisation, plans to raise HK$11.77 billion (US$1.5 billion) via convertible bonds to fund the growth of its core business and support its healthcare initiatives.
The zero-coupon note due in 2030 is the biggest convertible bond denominated in US dollars or Hong Kong dollars by a Chinese company this year, according to Bloomberg data.
It follows a US$690 million convertible senior note by video-sharing services provider Bilibili and a US$550 million convertible bond by data centre operator GDS Holdings in May.
“The company intends to apply the net proceeds from the issue of the bonds to further develop the group’s core business and strengthen the group’s capital position, support the group’s new strategic initiatives in the healthcare and elderly-care sectors and for general corporate purposes,” Ping An said in a filing to the Hong Kong stock exchange on Wednesday.
The bonds, which will be listed on the Frankfurt Stock Exchange, can be redeemed at par value on June 11, 2028.
The bonds can be converted into Hong Kong-listed shares at an initial price of HK$55.02 each. The notes will be convertible into about 213.8 million H shares – about 2.87 per cent of its existing shares in Hong Kong and 1.17 per cent of the overall shares of the company.