Hong Kong insurer eyes raising HK$4b for UAE insurance ambitions

Target Insurance plans to secure HK$4b in financing.

Hong Kong’s Target Insurance said in a filing it plans to secure financing of around HK$4b or more through bond issuance in order to expedite Himalayas Insurance's growth.

The targets for this funding include consortiums in China, the United Arab Emirates, and Saudi Arabia, among others, as previously mentioned in their bourse filing last 27 March.

The board said that the Hong Kong insurer, through its subsidiary, has successfully entered into letters of intent with multiple investors to raise funds exceeding HK$5.3b ($680m). 

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Further, it will engage in active discussions with the investors to finalise bond issuance arrangements and formal investment agreements, taking into account the progress of trading resumption. 

Any significant developments will be disclosed to shareholders and potential investors, obtaining necessary approvals in accordance with listing rules, as and when appropriate.

After financing is completed, Target Insurance plans to seek an international credit rating for Himalayas Insurance, aiming for an A- or higher rating.