Carlyle-backed China Pacific taps sovereign funds

China's third-largest insurer said in a statement to the Shanghai Stock Exchange that it would sell 462 million H-shares through a private placement. The issue is priced at HK$22.5 per share, a 2.6% discount on the closing price on Thursday, the day before the subscription agreement was signed.

GIC, Norges Bank and ADIA will pick up 241.3 million shares, 165.5 million shares and 55.2 million shares, respectively.

Chinese insurers are keen to tap the equity markets in order to replenish capital reserves and improve solvency ratios.

Carlyle originally injected $740 million in China Pacific in two tranches, in 2005 and 2007, for a 17% stake. The company listed in Shanghai in 2007 and Hong Kong in 2009. Carlyle has made five partial exits since December 2010, generating in excess of $4 billion and putting it on course for its biggest ever cash exit globally. The most recent sale was a $723 million block trade in July.

Carlyle is thought to hold 3.5% of China Pacific's total share capital. The interest is valued at about $1 billion at current market prices.

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• Topics
• Greater China
• Financials
• PIPEs
• GIC Private
• Abu Dhabi Investment Authority (ADIA)
• Sovereign wealth fund
• PIPE
• Financial Services
• China
• The Carlyle Group