After more than 9 months, Ping An issues bonds again

The willingness of financial institutions to issue bonds is still evident.

On April 24, Ping An announced that at the eighth meeting of its thirteenth board of directors, it reviewed and approved the proposal on issuing domestic bond financing instruments, and agreed to submit the relevant resolution to the company's 2024 annual shareholders' meeting for review.

The plan indicates that Ping An intends to conduct debt financing based on market conditions, issuing RMB bond financing instruments domestically in one or multiple tranches, with the principal amount not exceeding (including) RMB 50 billion.

Disclosure of Domestic Bond Financing Plan

The specific announcement shows that this bond financing by Ping An is aimed at meeting the needs of the company's long-term stable development, optimizing the capital structure, adjusting the company's debt structure, and reducing financial financing costs. Ping An intends to conduct debt financing based on market conditions, issuing domestic RMB bond financing instruments with a principal amount not exceeding (including) RMB 50 billion, including but not limited to capital replenishment bonds, financial bonds, corporate bonds, and other domestic RMB bond financing instruments permitted by regulatory agencies.

However, this domestic bond financing tool does not include convertible bonds.

Ping An also stated that the term of this round of bond issuance is expected to be 5 years or more, with the specific term structure and issuance scale of each term determined by the board of directors based on relevant regulations and market conditions.

Previous Round of Financing was H Share Convertible Bonds

Ping An's last bond issuance was more than 9 months ago. At that time, the company conducted financing through H share convertible bonds on the Hong Kong Stock Exchange.

On July 16, 2024, Ping An announced its intention to issue convertible bonds with a total principal amount of USD 3.5 billion (at an annual interest rate of 0.875%). The relevant convertible bonds can be converted into H shares under certain terms and conditions. The initial conversion price is HKD 43.71 per H share. The proceeds from this round of convertible bond issuance will be used to meet future business development needs centered on finance, including capital replenishment needs; supporting business needs for new strategic developments in healthcare and elderly care; and for general corporate purposes.

The aforementioned H share convertible bonds were completed on July 22, 2024, and were listed for trading on the Hong Kong Stock Exchange on July 23, 2024.

Convertible bond financing and bond financing have different characteristics; the former is relatively flexible and can be converted into common stock of the company to a certain extent, which helps to enhance the company's long-term capital.

Companies within the System Have Also Issued Bonds in Recent Years

Looking back over the past year, subsidiaries of Ping An, such as Ping An Property & Casualty Insurance and Ping An Life Insurance, have also issued bonds.

In February 2025, Ping An Life initiated the issuance of the first phase of perpetual capital bonds for 2025. The issuance scale of this bond was RMB 8 billion, with an oversubscription option of up to RMB 5 billion, ultimately completing a total issuance scale of RMB 13 billion, with a coupon rate of 2.35% and a subscription multiple of 2.4 times. The funds raised from this bond were used to replenish Ping An Life's core Tier 2 capital.

Earlier, in December 2024, Ping An Life successfully completed the issuance of perpetual capital bonds for 2024. The basic issuance scale of this bond was RMB 10 billion, with an oversubscription option of up to RMB 5 billion, ultimately completing an issuance scale of RMB 15 billion, with a coupon rate of 2.24% In July 2024, Ping An Property & Casualty Insurance issued capital replenishment bonds with a scale of 10 billion yuan and a financing interest rate of 2.27%. The bonds are 10-year fixed-rate bonds, and the raised funds will be used to replenish the company's capital, enhance the company's solvency, create conditions for the healthy development of the company's business, and support the continuous and stable development of the business.

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