ZhongAn Online announces pricing of first senior notes
ZhongAn Online P&C Insurance Co Ltd, an online-only insurance technology company in China, announced on Friday the successful pricing of its inaugural US$600 million issue of senior notes due 2025.
The issue price of the notes is equal to their principal amount and the notes have a fixed annual coupon of 3.125 percent.
The offering was six times oversubscribed, ZhongAn Online said.
The company has appointed J.P. Morgan Securities plc, Credit Suisse (Hong Kong) Ltd, China International Capital Corporation Hong Kong Securities Ltd and Morgan Stanley & Co International plc as joint global coordinators, joint book runners and joint lead managers of the proposed notes issue.
The proceeds of the notes, after deducting relevant fees and expenses, are currently intended to be used for working capital and general corporate purposes, according to the insurer.
Application has been made to the Stock Exchange of Hong Kong. Settlement and the issue of the notes is expected to occur on July 16.
A senior note is a type of bond that takes precedence over other debts in the event that the company declares bankruptcy and is forced into liquidation, which makes senior notes more secure than other bonds.
Because they carry a lower degree of risk, senior notes pay lower rates of interest than junior bonds.