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China Fund News reporter Liu Ming

Insurance giant Ping An of China disclosed that it plans to issue bonds convertible into the company's H shares, with a total principal amount of US$3.5 billion and an initial conversion price of HK$43.71 per H share. At the close of July 15 before the information was disclosed, the share price of Ping An of China's H shares was HK$36.05.

Ping An of China said that the net proceeds of the fundraising will be used to meet the group's future business development needs centered on finance and to supplement the group's capital needs; to support the group's business needs for the development of new medical and elderly care strategies; and for general corporate purposes.

On the evening of July 15, Ping An of China, which is listed on the A+H markets, issued an announcement on the proposed issuance of dollar-denominated H-share convertible bonds, proposing to sell convertible bonds to professional investors and only sell them outside the United States in accordance with Regulation S of the U.S. Securities Act. Convertible bonds will only be issued to "professional investors" as defined in Chapter 37 of the Hong Kong Stock Exchange Listing Rules and the Hong Kong Securities and Futures Ordinance, and will not be sold to the public in Hong Kong, nor will they be placed to any person related to the company as defined in the Hong Kong Stock Exchange Listing Rules.

On the morning of July 16, Ping An of China disclosed an announcement that it intends to issue H-share convertible bonds under general authorization. Ping An of China stated that it intends to issue bonds convertible into the company's H-shares under general authorization, which does not involve the issuance of the company's A-shares. The total principal amount of the bonds to be issued is US$3.5 billion, which can be converted into H-shares under the terms and conditions. The initial conversion price is HK$43.71 per H-share (subject to adjustment).

Ping An of China stated that assuming the bonds are fully converted at the initial conversion price of HK$43.71 per H share and no additional shares are issued, the bonds will be convertible into approximately 625 million conversion shares, accounting for approximately 8.39% of the company's existing issued H shares and 3.43% of the existing total issued share capital as of the date of this announcement, and approximately 7.74% of the company's issued H shares and 3.32% of the total issued share capital after the bonds are fully converted and the conversion shares are issued.

The announcement shows that the maturity date of the H-share convertible bonds issued this time is July 22, 2029. The outstanding principal amount of the bonds will accrue interest at an annual interest rate of 0.875% from July 22, 2024 (including that day), and will be paid in equal installments of US$437.50 per US$100,000 of the principal amount of the bonds every six months on January 22 and July 22 of each year.

Editor: Joey

Reviewer: Chen Siyang

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