Media365
Chinese e-commerce major JD.com has priced a 10 billion yuan (US$1.5 billion) dual-tranche offshore bond offering, as issuers from mainland China return to the currency amid improving funding conditions.
The Beijing-based e-commerce giant said in a filing to the Hong Kong stock exchange on Thursday that the dim sum bond – yuan-denominated notes issued outside the mainland – comprises 7.5 billion yuan of five-year senior unsecured notes carrying a 2.05 per cent coupon, and 2.5 billion yuan of 10-year notes with a 2.75 per cent coupon.
The notes are expected to be offered on or around April 10, subject to customary closing conditions, according to the filing.
The bonds were sold to non-US investors under the Securities and Exchange Commission’s Regulation S, according to the filing. JD.com plans to use the proceeds for general corporate purposes, including refinancing existing debt and repaying interest.
The offering marks the latest in a series of offshore yuan fundraisings by major Chinese technology firms, following similar moves by Kuaishou Technology, Meituan, Baidu and Alibaba Group Holding in recent months amid a stronger yuan and rising demand for local-currency funding. Alibaba owns the South China Morning Post.
S&P Global Ratings on Tuesday assigned an ‘A-’ long-term rating to the notes ahead of Thursday’s announcement, in line with JD.com’s issuer credit rating, citing the company’s low level of priority debt and a healthy net cash position. The rating remains subject to final terms and conditions, the rating agency added.
