Meituan considers second dim sum bond sale: report
Chinese food-delivery firm Meituan is reportedly planning to issue offshore yuan-denominated bonds, its second dim sum bond offering. The move follows a trend of tech companies seeking lower-cost yuan financing amid high US interest rates.
Chinese food-delivery giant Meituan (3690) is considering issuing offshore yuan-denominated bonds in the next few weeks, which could mark its second-ever dim sum bond offering, Bloomberg reported on Wednesday, citing people familiar with the matter.
The company has received the green light for the dim sum bond sale from Chinese authorities, and the proceeds will be used for general corporate purposes, the report said.
Last October, Meituan priced its 10-year dim sum bond at a coupon of 3.1 per cent, far below that of its 10-year US dollar-denominated bonds at 5.125 per cent.
This came as more and more tech firms are selling yuan-denominated notes onshore and offshore in China to benefit from low-cost financing amid the high US interest rates.
Last week, Chinese tech giant Tencent (0700) issued notes in the market, of which the amount of its offshore yuan bonds exceeded that of the US dollar bond in the same offering for the first time. In the deal, Tencent's 10-year and 30-year offshore yuan notes carried coupons of 2.4 per cent and 3 per cent, respectively, well below the over 6 per cent coupon on its US dollar notes.