China Pacific Insurance to issue HK$15.56 bn convertible bonds

China Pacific Insurance (Group) Co., Ltd. announced a proposed issue of HK$15,556,000,000 zero coupon convertible bonds due 2030 under a general mandate. The bonds, with an issue price of 100.15% of the principal amount, will not bear interest and are convertible into H Shares at an initial price of HK$39.04 per H Share. This represents a premium of approximately 21.24% over the closing price of HK$32.20 per H Share on September 10, 2025.

The offering is managed by Joint Global Coordinators, Joint Bookrunners, and Joint Lead Managers including J.P. Morgan, UBS, Huatai International, BofA Securities, and Morgan Stanley. Assuming full conversion, the bonds will yield approximately 398,463,114 H Shares, representing about 14.36% of existing issued H Shares and 4.14% of the company's current share capital. Net proceeds, estimated at HK$15,479.6 million, are earmarked for developing insurance business, implementing strategic initiatives in health service & elderly care, AI+, internationalization, and general corporate purposes, including working capital.

The issuance aligns with the company's strategy to secure medium to long-term offshore funding at low costs to drive sustainable business growth and enhance its global competitive edge. The Conversion Shares will be allotted under the General Mandate approved by shareholders at the 2024 annual general meeting.