PICC Property & Casualty Co. Ltd. , China's top non-life insurer, said it planned to issue up to 5 billion yuan (US$627 million) worth of 10-year subordinated term debt to refinance existing debt.

PICC said in a statement the proceeds would be used for early repayment of the 2 billion yuan 20-year subordinated loan due to China Development Bank, with the balance going towards raising the company's solvency margin. The non-life insurer said the issue would reduce finance expenses.

The issue, whose size and terms have yet to be determined, was subject to shareholders' and China Insurance Regulatory Commission's approval, the company said. It gave no further details.

Last week, PICC said first-half earnings rose 25 percent, driven by higher returns from debt and equity investments.
PICC, which is 9.9 percent-owned by U.S. giant American International Group, earned 1.11 billion yuan (US$139 million) in the first half, compared with interim profit of 889 million yuan a year ago.

Source:佚名