By Marisa Wong
Madison, Wis., July 16 - China Life Insurance Co. Ltd. announced that it issued RMB 28 billion of subordinated term debt.
The bonds have a maturity of 10 years.
The coupon is 4.7% for the first five years. At the end of the fifth year, the bonds are callable. If the bonds are not redeemed, the coupon will be 6.7% for the remaining five years.
As previously announced, China Life received approval from the China Insurance Regulatory Commission to issue up to RMB 38 billion of 10-year and 15-year subordinated bonds. The newly issued 10-year bonds comprise the first tranche within the approved limit.
Proceeds from the issuance will be used to replenish the company's supplementary capital and raise its solvency ratio.
China Life is a Beijing-based insurance company.
| Issuer: | China Life Insurance Co. Ltd.
|
| Issue: | Subordinated term debt
|
| Amount: | RMB 28 billion
|
| Maturity: | 2022
|
| Coupon: | 4.7% for first five years; 6.7% for last five years if bonds are not called
|
| Call option: | After five years
|
| Announcement date: | July 16
|
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