China Life mandates banks for up to $2 billion bond offering By Reuters

© Reuters. FILE PHOTO: Brand of China Life Insurance coverage is seen on a door at a department in Beijing, China, March 24, 2016. REUTERS/Jason Lee/File Picture

By Georgina Lee and Scott Murdoch

HONG KONG (Reuters) – China Life Insurance coverage (Abroad) Hong Kong has mandated banks for its 10-year subordinated bond providing, based on a preliminary time period sheet seen by Reuters on Monday.

The Hong Kong arm of China’s second-biggest insurer by belongings is trying to elevate between $1 billion and $2 billion, folks with direct data of the matter have beforehand mentioned.

One of many folks confirmed that the quantity has not modified and that the providing is prone to be launched later in day.

China Life didn’t reply to an e mail from Reuters searching for touch upon the deal.

The bond is anticipated to be rated A- by S&P World (NYSE:), and might be callable, giving the issuer the suitable to redeem after 5 years, based on the time period sheet.

In mid-July, the insurer was sounding out traders about pricing it at 120 foundation factors (bps) to 130 bps above five-year U.S. Treasuries, or a yield of 5.25% to five.5%, sources advised Reuters on the time.

It will likely be priced as early as Tuesday, based on the time period sheet.

The final time China Life tapped the bond market was in March 2019, when it issued 35 billion yuan’s price in China’s interbank bond market.

The corporate, which reported 327.2 billion yuan ($45.7 billion) premium revenue within the first quarter had no excellent greenback debt as of its 2022 annual report.