By Scott Murdoch
(Reuters) – China’s Ping An Insurance Co Ltd is considering issuing convertible bonds worth up to $5 billion, people familiar with the matter said.
One of the sources said the bonds could raise between $2 billion and $5 billion, and the two sources added that an agreement is expected to be reached in the next few weeks.
They could not be named because they were discussing confidential information.
In a filing to the Hong Kong Stock Exchange on Wednesday, Ping An said it had received shareholder approval to issue debt at any time over the next three years.
The company said in a statement to the Egyptian Stock Exchange, “The company will make its decision regarding any financing within the scope of the license granted to it at the annual general assembly in accordance with the principle of maximizing the interests of shareholders and based on business development and the capital plan.”
He did not mention whether there is currently a study to issue convertible bonds.
The issuance of convertible bonds by Ping An would expand a wave of convertible bonds issued by Chinese companies recently, led by Ali Baba (NYSE:) Group, which raised $5 billion in May.
Bloomberg News first reported Ping An’s plans to issue convertible bonds on Tuesday.
