By Angela McDaniels
Tacoma, Wash., June 30 - PICC Property and Casualty Co. Ltd. issued RMB 6 billion of 10-year subordinated term debt on Wednesday, according to a company news release.
The interest rate is 4.6% for the first five years.
The debt is callable at the end of the fifth year. If the company does not exercise its redemption right, the interest rate will increase to 6.6%.
The proceeds will be used to raise the solvency margin of the company.
As previously reported, the company received approval from its board of directors to issue up to RMB 8 billion of 10-year subordinated term debt, and it sought shareholder approval of the issue at a meeting on Friday.
The Beijing-based group's principal activities are the underwriting of vehicle, commercial, homeowners, cargo and liability insurance.
| Issuer: | PICC Property and Casualty Co. Ltd.
|
| Issue: | Subordinated term debt
|
| Amount: | RMB 6 billion
|
| Maturity: | 2020
|
| Coupon: | Initially 4.6%; steps up to 6.6% after five years
|
| Price: | Par
|
| Call option: | At end of fifth year
|
| Settlement date: | June 30
|
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