Meituan plans dim sum bonds with 2.9% and 3.6% guidance
Chinese food delivery firm Meituan is issuing 5- and 10-year offshore yuan bonds with initial price guidance of 2.90% and 3.60%, according to a term sheet. Proceeds will refinance existing offshore debt and cover general corporate purposes.
Chinese food delivery company Meituan (3690) is issuing five- and 10-year offshore yuan bonds, known as dim sum bonds, with initial price guidance of around 2.90 per cent for the shorter tenor and 3.60 per cent for the longer one, according to a term sheet seen by Reuters.
Reuters reported on Monday that Meituan aimed to raise about 7 billion yuan (US$1.05 billion) through the deal. The company plans to use the proceeds to refinance existing offshore debt and for general corporate purposes. Meituan did not immediately respond to a Reuters request for comment on Tuesday.
The bonds are senior unsecured debt, meaning they are not backed by specific assets. They are expected to receive Baa1 ratings from Moody's and BBB+ ratings from S&P Global Ratings and Fitch. All three rating agencies have negative outlooks on Meituan's issuer ratings.
CITIC Securities, Goldman Sachs, BofA Securities, China Construction Bank, ICBC, Bank of Communications and HSBC are among the lead banks for the deal.
Meituan returned to profitability in the second quarter as it emerged from a tough year of subsidy-fuelled competition in China's delivery market.