(Xinhua)
Updated: 2008-02-15 10:37

People's Insurance Company (Group) of China (PICC) has been approved to sell 10 billion yuan ($1.39 billion) worth of subordinated bonds to enlarge its capital, the country's insurance regulator said on Thursday.

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The country's largest non-life insurer said proceeds from the sale would be used to develop its life insurance business as well as other services that are aimed to build the company into a comprehensive service provider.

It would be another financing campaign launched by the company following its Hong Kong listing in 2003.

The insurer would have one year after the approval to sell the 10-year bonds, according to the China Insurance Regulatory Commission (CIRC).

PICC said earlier it was also preparing to list on the mainland market in 2008.

Wu Yan, president of PICC, said the rapid development of the company's life insurance services and the expansion into non-insurance sectors would both need large amounts of capital.

China's insurance regulatory body allowed insurance companies to finance through selling subordinated bonds in 2004. A number of domestic insurers had issued such bonds to enlarge their capital.