Completion of Overseas Issue of Additional US$700 Million Senior Bonds by China Re Group

Createdate: 2017年06月29日Hits:

  On 21 June, China Reinsurance (Group) Corporation successfully completed the overseas issue of additional US$700 million senior bonds through its overseas platform. With the outstanding operation fundamentals, good international credit rating and strong brand image of China Re Group well recognized by the global capital market, the issue was well received by the market with overwhelming levels of oversubscription. The additional issue was based on the completion of overseas issue of the first tranche of senior bonds on 2 March this year, achieving a breakthrough in financing. The total size of bonds after the additional issue amounted to US$1.5 billion. The issue is the largest overseas bonds issued by Chinese insurance companies to date, and is groundbreaking in the development history of China Re Group.

  The bond type of the additional issue by China Re Group is fixed-rate US$ senior bonds with the additional issue size of US$700 million. The terms of the issue are consistent with that of the first tranche and the term is 5 years. The coupon rate of the issue is 3.375%. The credit spread has narrowed 25 BP against the initial guidance. The offering attracted subscriptions from over 90 leading professional investment institutions around the world, and was oversubscribed by over 3 times. The investors were represented by diverse groups, which not only covered many Chinese leading investment institutions, but also global prominent investment institutions from Europe, Middle East and other regions; of which banking institutions, funds/asset management, sovereign institutions/enterprises, private banking and other investors accounted for 46%, 41%, 7% and 6% respectively. It highlighted the full confidence of investors in China Re Group’s excellent reputation.

  China Re Group once again made a wonderful exposure in the global capital market, further promoted its corporate image, boosted the confidence of global investors and promoted China Re Group to become an active issuer in the overseas bond market. The overseas issue of bonds effectively utilized the credit advantages of China Re Group, broadened financing channels, enriched direct financing methods, further complemented overseas foreign exchange financial strength, allowed China Re Group to better serve “Belt and Road” national strategy and optimized asset allocation and enhanced corporate value.

  CICC, HSBC, Bank of China, Hong Kong Branch of China Everbright Bank, Galaxy International Securities (HK), CCB International, China Merchants Securities (HK) acted as the joint global coordinators, joint bookrunners and joint lead managers of the issue of bonds.

  As the only state-owned reinsurance group, China Reinsurance Group is Asia's largest and the world's eighth largest reinsurance group, having a leading position in the Chinese reinsurance market. At the same time, China Reinsurance Group has rich data accumulation and leading expertise, extensive customer coverage and service capabilities, prudent asset management and outstanding investment platform, as well as a sound risk management system and a solid risk management capability. With a strong capital strength and sustained sound operating results, the Group has maintained a Bayer "A (Outstanding)" rating for the seventh consecutive year and maintained the S & P "A + " rating for the third year in a row.

  In the future, the Group will further dock the international capital market, broaden the global resource allocation, establish the international image of the company, expand the international business layout, deepen the implementation of the Group's "one three five" development strategy, and actively integrate and escort “the Belt and Road” strategy.

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