By Marisa Wong
Madison, Wis., Nov. 28 - Shin Kong Financial Holding Co., Ltd. announced that its subsidiary, Shin Kong Life Insurance Co. Ltd., priced NT$5 billion of perpetual cumulative subordinated corporate bonds at par.
The coupon is fixed at 3.35% for the first 10 years. The bonds are then callable quarterly at par plus accrued interest if the company's RBC ratio after redemption is more than one times the required minimum RBC ratio at the time of calculation. If the bonds are not redeemed, the coupon will be increased to 4.35%.
This is Shin Kong Life's first issue of perpetual cumulative subordinated bonds for 2012.
Shin Kong Life said before that it will use proceeds to increase qualified capital and enhance its financial structure. The company plans to use the funds within the next two quarters.
The holding company and its life insurance subsidiary are based in Taipei, Taiwan.
| Issuer: | Shin Kong Life Insurance Co. Ltd.
|
| Issue: | Perpetual cumulative subordinated corporate bonds
|
| Amount: | NT$5 billion
|
| Maturity: | Perpetual
|
| Coupon: | 3.35% for first 10 years; if bonds are not redeemed, coupon will be adjusted to 4.35%
|
| Price: | Par
|
| Yield: | 3.35%
|
| Call option: | Quarterly at par plus accrued interest if RBC ratio after redemption is more than one times required minimum RBC ratio at time of calculation
|
| Announcement date: | Nov. 28
|
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