On 2 March, the overseas platform of China Re Group successfully completed its issue of the first tranche US$800 million senior bonds. The issue was well received by the market with overwhelming levels of oversubscription, demonstrating that the outstanding operation fundamentals, good international credit rating and strong brand image of China Re Group have been well recognized by the global capital market. It is a pioneer for China Re Group in initiating financing in overseas bond markets, and is a landmark in the development history of the Group.
The bond type of the issue is fixed rate US$ senior bonds with the issue size of US$8 million and the term of 5 years. The finalized 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 130 leading professional investment institutions around the world, and was oversubscribed by 3.5 times. The investors were represented by diverse groups, including banking institutions, funds, sovereign institutions/insurance institutions, private banking and enterprises accounting for 47%, 33%, 16%, 2% and 2% respectively in terms of subscription amount, which not only covered many Chinese leading investment institutions, but also global prominent investment institutions from Europe, Middle East and other regions. Following its successful listing in Hong Kong in 2015, the successful issuance of the bonds further promoted a good corporate image for China Re Group in the global capital market, boosted the confidence of global investors and consolidated the Company’s position in the field of reinsurance. China Re Group launched various flexible operating strategies in utilizing overseas capital through the successful issuance of the first tranche of bonds, facilitating the development progress of the “One-Three-Five” strategic objectives.
China Re Group is the only state-owned reinsurance group in China. We were also Asia’s largest and the world’s eighth largest reinsurance group in terms of reinsurance premium income in 2015, according to A.M. Best. As of 2016, China Re Group was rated “A (Excellent)” by A.M. Best for seven consecutive years and “A+” by Standard & Poor’s for three consecutive years. With deep roots in the PRC reinsurance market, the Company has accumulated strong specialized technology and data advantages, established a scientific and sound risk management system and developed outstanding capacity in customer services. It has also maintained close business relationship and cooperation with most of the domestic insurance companies over the longer term, and will continue to play an active role in the development of the PRC reinsurance market.
CICC, HSBC, Bank of China and Hong Kong Branch of China Everbright Bank acted as the joint global coordinators, joint bookrunners and joint managers, and Galaxy International Securities (HK), CCB International, China Merchants Securities (HK) acted as the joint bookrunners and joint managers for the issuance of bonds.
China Re Group capitalized on the opportunities arising from the issuance to fully implement the “One-Three-Five” development strategies, further diversify the financing channels, optimize the domestic and overseas resources allocation, continuously enhance the integrated competitiveness, intensively develop domestic market, strengthen our international presence, and take full advantage of our special role in serving the country’s strategy with reinsurance business, thereby further consolidating our leading position in the domestic reinsurance channel and reinforcing our influence in the global reinsurance market.