Greatwall Life to issue RMB 5 mln in subordinated bonds

Published: 05 Nov 2009 01:08:10 PST

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Nov. 5, 2009 (China Knowledge) - Greatwall Life Insurance Co Ltd earlier this week obtained approval from the China Insurance Regulatory Commission, the country's top insurance watchdog, for its subordinated bond issuance.

Greatwall Life will be able to raise up to RMB 500 million from the subordinated bonds, which will have a maximum maturity of ten years.

Some industry experts have said the issuance will help the firm expand its capital and consolidate its solvency, whereas others have said that the proceeds from the issuance may be used for investments that will generate profit.

Greatwall Life, which was established in 1992 with a registered capital of nearly RMB 1.41 billion, realized about RMB 1.04 billion of insurance premium income in the first three quarters of this year, ranking 21st among 31 domestic life insurance companies, according to statistics released by the CIRC.