ZhongAn Online Hopes to Raise $600M via First Public Issue of Notes Offshore

Chinese insurtech giant ZhongAn Online P&C Insurance Co., Ltd. hopes to raise USD$600 million via its first public issue of notes offshore.

ZhongAn Online announced on 10 July that the issue price of their senior notes due in 2025 will be equal to their principal amount, and that the notes have a fixed annual coupon of 3.125%

ZhongAn has applied with the Hong Kong Stock Exchange (HKSE) for the issue, which is scheduled for 16 July.

The online-only insurer said that the proceeds of the five-year notes would be used for working capital and generate corporate purposes. According to ZhongAn the issue is six-times oversubscribed.

ZhongAn Online 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 for the offering.

The notes are expected to obtain a “Baa2” rating from Moody’s.

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