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China's Ping An raises $3.5 billion in convertible bond deal

Published 07/16/2024, 01:03 AM
Updated 07/16/2024, 01:05 AM
© Reuters. FILE PHOTO: The sign of Ping An Insurance Group is pictured on the Ping An International Financial Center in Beijing, China, Nov. 8, 2023. REUTERS/Tingshu Wang/File Photo
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By Scott Murdoch

SYDNEY (Reuters) - China's Ping An Insurance said on Tuesday it has raised $3.5 billion through a convertible bond sale.

The five-year bond's coupon was set at 0.875% per annum, paid semi-annually, Ping An said in a regulatory filing.

Its conversion price was set at HK$43.71 per share, the statement showed.

Ping An's Hong Kong-listed stock was down 3.88% at HK$34.65, while the broader Hang Seng Index was down 1.26%.

The company's Shanghai-listed stock is off nearly 3%.

The sale was multiple times oversubscribed with about 100 investors placing orders, said a person familiar with the deal.

The 20 biggest investors bought over 70% of the deal, the person said, declining to be identified discussing non-public information.

The bond was classified as Reg-S meaning it was aimed at buyers outside of the U.S.

© Reuters. FILE PHOTO: The sign of Ping An Insurance Group is pictured on the Ping An International Financial Center in Beijing, China, Nov. 8, 2023. REUTERS/Tingshu Wang/File Photo

It is the largest-ever Reg-S-only convertible bond, the largest convertible bond in the insurance sector, and the first offshore convertible bond by a Chinese insurer, the person said.

Morgan Stanley and JPMorgan led the transaction, the filing showed.

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