Ping An Insurance (Group) Company of China, China's second-largest insurer, said it plans to issue no more than RMB 26 billion  (USD 4.1 billion) of convertible bonds to boost its operation capital.

The bonds have a coupon rate of no more than three percent and could be converted to Ping An Insurance's yuan-denominated shares in Shanghai after maturing in six years, it said in a statement filed to the Shanghai Stock Exchange Tuesday night.

The proceedings will be used to replenish the operation capital to boost business growth, according to the statement.

The plan has been approved by the board of directors, but is subject to approval by regulators and also investors at a Feb. 8 shareholders' meeting, Ping An Insurance said.

The insurer's solvency margin, or the ability to pay claims, was 170.7 percent at the end of October. Provided all the bonds were converted to shares, the solvency ratio could be raised to 194.9 percent based on the October-end capital.