New China Life gets OK for RMB 10 billion 10-year subordinated debt

By Marisa Wong

Madison, Wis., July 5 - New China Life Insurance Co. Ltd. said it recently received approval from the China Insurance Regulatory Commission to issue up to RMB 10 billion of subordinated term debt. The approval is valid for six months.

The bonds will have a maturity of 10 years.

New China Life first proposed the issuance of subordinated term debt in February, when it also announced plans to issue up to RMB 5 billion of hybrid capital bonds with maturities of more than 10 years.

Shareholders approved the proposed subordinated term debt at the extraordinary general meeting held on March 20, according to a company news release.

As previously announced, proceeds from the subordinated term debt and the hybrid capital bonds will be used to replenish the company's supplementary capital and increase the solvency ratio.

The life and health insurance company is based in Beijing.

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