S&P Global Ratings has assigned a ‘BBB+’ long-term issue rating to a Tier 2 subordinated corporate bond proposed by Nanshan Life Pte. Ltd., a Singapore-based company. The rating reflects an unconditional and irrevocable guarantee provided by its parent company, Taiwan-based Nan Shan Life Insurance Co. Ltd., which holds an ‘A-‘ rating with a stable outlook.
The guarantee ensures that Nan Shan Life will cover principal and interest payments if Nanshan Life Pte. Ltd. defaults. This assurance aligns the bond’s rating with other subordinated obligations issued by Nan Shan Life. The bond, which qualifies as Tier 2 capital for Nan Shan Life, will be consolidated under the parent company’s balance sheet, with no significant impact on its financial structure.
The bond has a maturity of 15.5 years and may be redeemed at the issuer’s discretion within three months up to the reset date in 10.5 years. Notably, the bond does not include step-up or interest deferral terms. Proceeds from the issuance will primarily enhance Nan Shan Life’s regulatory capital adequacy ratio.
Any substantial changes to the bond’s terms could affect its rating. This issuance underscores Nan Shan Life’s commitment to maintaining robust financial health and supporting its subsidiary’s financial obligations.
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