China's PICC seeks shareholder OK to issue RMB 8 billion 10-year notes

By Lisa Kerner

Charlotte, N.C., June 9 - PICC Property & Casualty Co. Ltd. will ask its shareholders to vote on the proposed issue of RMB 8 billion of 10-year notes at the annual meeting on June 25.

As reported on June 1, the issue has been approved by the company's board of directors.

Controlling shareholder the People's Insurance Co. (Group) of China Ltd. requested the shareholder vote.

Proceeds of the notes would be used for raising the solvency margin of the company, according to a PICC news release.

"After conscientiously comparing various proposals to meet the above capital need and taking into account the current low interest rate environment, the board considers the issue of subordinated term debts to be the most appropriate proposal," the release said.

PICC said the board will determine the terms and conditions of the issue including issue date, issue size and interest rates after taking into account the market conditions and all other relevant factors.

The issue is also subject to approval by the China Insurance Regulatory Commission, the release said.

The Beijing-based group's principal activities are the underwriting of vehicle, commercial, homeowners, cargo and liability insurance.

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