Feb. 10, 2012 (China Knowledge) - Ping An Insurance (Group) Co<601318
>, China's second-largest insurer by premium income, announced yesterday that it has obtained approval from its shareholders to issue up to RMB 26 billion of convertible bonds.
The insurer still needs approval from the China Insurance Regulatory Commission
and the China Securities Regulatory Commission
, said Ren Huichuan, general manager of the company, adding that he expects the company to carry out the offering in the third quarter.
Upon completion of the deal, the insurer's solvency adequacy ratio will rise to about 194%.
The company said earlier that the bonds could be converted into Shanghai-listed
A shares and would carry a coupon rate of up to 3% and have a maturity of six years, according to an earlier report
from China Knowledge.