Ping An Insurance (Grp) Co of China Ltd : China Regulator OKs Convertible Debt Issues By Listed Insurers
05/31/2012| 11:00pm US/Eastern
China's insurance regulator said Thursday it would allow listed insurance companies to issue convertible subordinated debt in a move to help the insurance industry boost its capital.
Insurers will be allowed to issue convertible subordinated debt that can be counted as supplementary capital before it is converted into shares, the China Insurance Regulatory Commission said in a notice published on its website.
The subordinated debt would need to have a maturity of at least five years, according to the notice.
Insurers need to conform to regulations set by the China Insurance Regulatory Commission, and file an application to issue debt within six months of receiving CIRC's approval for an offer.
The notice didn't say when the measure took effect but it appears to be in place already. On Monday, Ping An Insurance (Group) Co. of China Ltd., the country's second-largest life insurer by premiums, was granted permission to issue up to CNY26 billion in subordinated convertible debt.
-Grace Zhu contributed to this article, Dow Jones Newswires; (86 10) 8400-7705; firstname.lastname@example.org