China Life, the nation’s second biggest insurer, is reportedly in discussions with bankers to issue a 10-year tier-two bond to raise between $1 billion and $2 billion.
According to insiders close to the matter, the insurer sent out invitations to banks for the role of global bookrunners.
According to a report from Reuters, China Life is soft-sounding investors for a pricing of 120 basis points (bps) to 13 bps above five-year US Treasuries, sources close to the matter said. Terms are subject to change when the firm gives initial price guidance as early as this week.
The insiders added that the bond will likely be callable, giving the issuer the right to redeem after five years.
Earlier this month, it was also reported that the insurer is exploring ways to upgrade services for mainland clients, driven by the exceptionally strong sales market as borders reopened and mainlanders return to Hong Kong.
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