Posted inHong Kong

FWD to raise $1.4bn from private placements

Funds will help provide additional capital to support its growth in the life industry.
Glass jar for money on background

Insurance company FWD Group has entered into subscription agreements with a number of investors to raise around $1.43bn.

The private placements are expected to complete in December 2021, subject to customary closing conditions.

They will take the form of cash subscription of new ordinary shares to be issued by FWD. The proceeds will be used to “provide additional capital to support FWD’s strong growth momentum and to reduce leverage”, the company said.

The investors include:

  • Athene Holding subsidiary, through an investment allocated by its asset manager Apollo, Canada Pension Plan Investment Board;
  • Li Ka Shing Foundation;
  • Metro Pacific Investments Corporation;
  • Pacific Century Group;
  • The Siam Commercial Bank; and
  • Swiss Re.

Huynh Thanh Phong, group chief executive and executive director of FWD, said, “We’re very excited to welcome new and existing partners to invest in FWD.

“They bring significant expertise and extensive network to support our continued growth and enhance our distribution and investment capabilities. These latest investments in FWD reflect a recognition of our ability to continue our strong growth momentum in the attractive Asian life insurance sector.”

This fundraise comes several weeks after International Adviser reported that FWD Group had suffered a set back in its pursuit of a US initial public offering.

The Hong Kong-based firm was looking to raise as much as $3bn with the IPO.

Part of the Mark Allen Group.