China Life Insurance (Overseas) Hong Kong a appointed banks for its 10-year subordinated bond issuance, according to a preliminary document seen by Reuters on Monday.
The Hong Kong branch of the second largest Chinese insurer in terms of assets is seeking to raise between $1 and $2 billion, according to individuals with direct knowledge of the matter.
One of these individuals confirmed that the amount has not changed and that the offer will probably be launched later in the day.
China Life did not respond to a Reuters email requesting comments on the operation.
The bond is expected to be rated A- by S&P Global and will be callable, giving the issuer the right to redeem after five years, according to the terms sheet.
In mid-July, the insurer surveyed investors on the possibility of pricing the bond at 120 basis points (bps) or 130 bps above US five-year Treasury notes, yielding 5.25% to 5.5%, sources told Reuters at the time.
The price of the bond will be set as early as Tuesday, according to the terms sheet.
The last time China Life tapped the bond market was in March 2019, when it issued RMB 35 billion in the Chinese interbank bond market.
The company, which reported RMB 327.2 billion ($45.7 billion) in premium revenues in the first quarter, had no outstanding dollar debt in its 2022 annual report.
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