China Pacific Insurance to issue HK$15.56 billion convertible bonds

SHANGHAI - China Pacific Insurance (Group) Co., Ltd. (CPIC) announced Thursday it has entered into a subscription agreement with managers to issue convertible bonds worth HK$15.56 billion ($2 billion) under its general mandate.

The bonds will be convertible into H Shares at an initial conversion price of HK$39.04 per share, subject to adjustments according to terms and conditions, the company said in a statement based on a press release.

If fully converted at the initial price, the bonds would be convertible into approximately 398.46 million shares, representing about 14.36% of CPIC’s existing issued H Shares and 4.14% of its total issued share capital.

The conversion shares would represent approximately 12.55% of the issued H Shares and 3.98% of the company’s total issued share capital after full conversion, assuming no other changes to the share structure.

CPIC intends to use the net proceeds from the bond issuance to develop its insurance business, implement strategic initiatives in health services, elderly care, artificial intelligence, and internationalization, as well as for general corporate purposes including working capital.

The company has obtained the Registration Certificate of Foreign Debt Borrowed by Enterprise from China’s National Development and Reform Commission for the bond issuance. CPIC will apply to the Hong Kong Stock Exchange for listing of both the bonds and the potential conversion shares.

The subscription agreement was entered into on September 10, 2025, after trading hours. The issuance remains subject to satisfaction of conditions precedent in the subscription agreement, and the company noted the transaction may not proceed to completion.

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