Wanda-Backed Insurer Skips Bond Call Option in Sign of Cash Woes

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A pedestrian crosses the street outside one of Dalian Wanda Group’s shopping malls in Shanghai on May 25. Photo: Bloomberg

(Bloomberg) — Aeon Life Insurance Co. Ltd., a Chinese insurer backed by Dalian Wanda Group Co. Ltd., chose not to exercise a call option on a subordinated bond in a move that usually signals an issuer’s liquidity strains or refinancing challenges.

The insurance company decided to skip the March call option on its 2 billion yuan ($278 million) subordinated bond maturing in 2029 that was used to replenish its capital, according to a statement from the company published on the Chinamoney.com website Wednesday.