ZhongAn to Raise $600 Million for Bonds Sale in Hong Kong

Binwei Wang
    Jul 10, 2020 12:00 PM  PT
ZhongAn to Raise $600 Million for Bonds Sale in Hong Kong
author: Binwei Wang   

ZhongAn Online P & C Insurance Co. Ltd. (HKEX: 06060) announced Friday it will sell $600 million in five-year bonds, expected to be listed on the Stock Exchange of Hong Kong.

The online InsureTech company said the bookrunners on the issuance are J.P. Morgan, Credit Suisse, China International Capital Corporation and Morgan Stanley.

The move marked ZhongAn's inaugural public bond issuance in the offshore capital markets. Moody's Investors Service has assigned a Baa1 insurance financial strength rating (IFSR) with a "stable" outlook and a Baa2 rating to the notes.

ZhongAn reported a narrowed net loss of 454.1 million yuan last year compared with 1.74 billion yuan in 2018, driven by a 30% year-on-year increase in gross written premium (GWP) for 2019. In particular, ZhongAn's GWP realized a year-on-year growth of 146.4% from its core products, namely Personal Clinic Policy and Healthcare Ecosystem of Alipay Insurance.

The stock in ZhongAn closed at HK$52.8 on Friday in Hong Kong.

The bonds will carry a 3.125% interest growth per annum.