On July 16th, Guolinghui reported that Ping An Insurance (02318.HK) announced that on July 15, 2024, the company signed a subscription agreement with agents (namely Morgan Stanley Asia Limited, J.P. Morgan Securities (Asia Pacific) Limited and Ping An Securities (Hong Kong) Limited). According to the subscription agreement, the company has agreed to issue or issue in accordance with the agent's instructions, and the agent has separately (rather than jointly) agreed to subscribe and pay or cause subscribers to subscribe and pay for the bonds, subject to several conditions stated in the subscription agreement. The agent has conducted pricing for the tender, and the terms of the bond (including but not limited to the principal amount and initial conversion price) have been determined after pricing for the tender.
The total principal amount of bonds to be issued by the issuer is $3.5 billion and can be converted into H shares under the terms and conditions. The initial conversion price is HKD 43.71 per share of H shares (adjustable). Assuming that all the bonds are converted at the initial conversion price of HKD 43.71 per share of H shares and no other shares are issued, the bonds will be convertible into approximately 0.625 billion shares of conversion shares, accounting for approximately 8.39% of the existing H shares and 3.43% of the existing issued share capital of the company as of the date of this announcement; and accounting for approximately 7.74% of the existing H shares and 3.32% of the existing issued share capital of the company after the conversion shares are issued for the purpose of conversion. The conversion shares will be fully paid and will enjoy the same status as the existing H shares on all relevant registration dates.
After the issuance of bonds is completed, the company plans to use the net proceeds from the issuance of bonds to meet the financial core business development needs of the group, to supplement the capital requirements of the group; to support the business needs of the group's medical, retirement and other new strategic development; and to be used for general corporate purposes.