NEW ISSUE ALERT : CHINA LIFE USD 60Y NC5 EXTENDABLE SUBORDINATED BOND

Issuer : China Life Insurance Company Limited
Issuer Ratings : As3 (Moody’s) AA- (S&P) A+ (Fitch)
Issue : Subordinated Capital Securities
Expected Issue Rating : A3/A/A-
Issue Size : USD Benchmark
Tenor : 60NC5 (with Issuer extension at year 60)
Price Guidance : 4.375% area
Optional Redemption : Issuer Optional Redemption on [.] 2020 and every Distribution Payment Date thereafter, subject to CIRC approval and post redemption Solvency Margin Ratio not falling below 100%.
Distribution Rate :
1) [.]% fixed rate till [.] 2020 (the “First Call Date”)
2. From [.] 2020 and every 5 years thereafter, reset to the then prevailing 5Y US Treasury Rate plus Margin of [.]%, payable semi-annually in arrears (no step-up in Margin)
Optional Deferral : At Issuer’s discretion on a cumulative and compounding basis subject to a Dividend Stopper
Dividend Stopper : Applicable on Parity and Junior Obligations
Arrears of Distribution : Compulsory payment of Arrears of Distribution (in full) upon the earliest of (a) Redemption; (b) Breach of Dividend Stopper; (c) Winding-Up of Issuer
Governing Law : English law (except for subordination provisions which shall be governed by PRC Law)
Other Details : USD200k/1k Denoms, HKSE Listing

China Life US$ Extendible 60NC5

• Largest insurer in China, 68% owned by government, #1 market share

Key Comparables
Nippon Life A3/A-/BBB+ 5.1% 44 NC2024 105.00 4.44%
Dai-ichi Life A3/A-/BBB+ 5.1% Perp NC2024 106 4.31%
China Taiping NR/BBB-/BBB- 5.45% Perp NC2019 103 4.65%