The People's Insurance Company (Group) of China (PICC) has been
approved to sell 10 billion yuan (1.39 billion U.S. dollars) worth
of subordinated bonds to enlarge its capital, the country's
insurance regulator said on Thursday.
The country's largest non-life insurer said proceeds from the
sale would be used to develop its life insurance business as well
as other services that are aimed to build the company into a
comprehensive service provider.
It would be another financing campaign launched by the company
following its Hong Kong listing in 2003.
The insurer would have one year after the approval to sell the
10-year bonds, according to the China Insurance Regulatory
Commission (CIRC).
PICC said earlier it was also preparing to list on the mainland
market in 2008.
Wu Yan, president of PICC, said the rapid development of the
company's life insurance services and the expansion into
non-insurance sectors would both need large amounts of capital.
China's insurance regulatory body allowed insurance companies to
finance through selling subordinated bonds in 2004. A number of
domestic insurers had issued such bonds to enlarge their
capital.?
(Xinhua News Agency February 15, 2008)
