Ping An Insurance Sells $3.5 Billion in Convertible Bonds

  • Chinese insurance firm follows others in convertible bond sale
  • Proceeds to be used to bolster capital position, core business

The Ping An International Financial Center in Beijing. 

Source: Bloomberg

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Ping An Insurance (Group) Co. priced an offering of $3.5 billion in convertible bonds, joining a wave of issuance of the equity-linked instruments in Asia over the past few months. Its shares in Hong Kong and Shanghai declined.

The company sold the bonds due in 2029 with a coupon of 0.875%, according to a statementBloomberg Terminal to the Hong Kong stock exchange on Tuesday. The initial conversion price is HK$43.71 per H share, representing a premium of about 21% over the stock’s closing price in Hong Kong on Monday. Bloomberg News earlier reported on the deal, citing people familiar with the matter.