China Reinsurance gets commitments worth US$1.12 billion

[HONG KONG] China Reinsurance (Group) received commitments worth US$1.12 billion from cornerstone investors as the country's biggest reinsurer launched its initial public offering in Hong Kong on Monday, according to a term sheet of the deal seen by Reuters.

The 15 investors, which will not be able to sell shares in China Re until six months after the IPO, included Great Wall Pan Asia International Investment and State Grid Crop of China, each with US$150 million, and China Development Bank with US$110 million, the terms showed.

The People's Insurance Company (Group) of China Ltd, Prudential Insurance Company of America and China Life Insurance Company Ltd were also cornerstone investors.

China Re is offering 5.77 billion new shares at an indicative range of HK$2.25 to HK$2.70 each, the terms showed, confirming information from a source with direct knowledge of the deal.

The IPO is slated to be priced on Oct 16.

REUTERS