Meituan expects to raise US$3 billion from a dual-currency bond offering, as the Chinese on-demand delivery giant looks to bolster its war chest to stave off the challenge from rivals led by Alibaba Group Holding and JD.com.
The Beijing-based company will offer US$1.99 billion in greenback-denominated bonds and 7.08 billion yuan (US$1 billion) of notes in the local currency, according to its statement to the Hong Kong stock exchange on Wednesday.
Meituan said it had signed an agreement with initial buyers and applied to the city’s bourse for the listing and trading of those securities, which are targeted at professional investors. The proceeds from the bond offering would be used to refinance existing offshore debts and for other general corporate purposes, according to the statement.
The US dollar bonds carry maturity terms of six, seven and 10 years, with the coupon rates ranging from 4.5 per cent to 5.125 per cent. The…
