Meituan reported to issue the biggest-ever bonds to raise US$3 billion

Meituan (3690) plans to raise about US$3 billion (HK$23.4 billion) from bond issuance, which would be the largest-ever for the Chinese food delivery giant, Bloomberg News reported.

Meituan is planning to issue US$2 billion notes and a batch of offshore yuan bonds equivalent to US$1 billion, and they may list as early as Tuesday, according to the report.

The company has a US$750 million bond at an interest rate of 2.125 percent due on Tuesday, and the next major offshore bond will be due for repayment in 2028.

Earlier in the day, Meituan announced plans to issue U.S. dollar and renminbi-denominated senior notes, which will be used for refinancing existing offshore debt.

According to a regulatory filing, the net proceeds will also be used for general corporate purposes.

The company said that specific details, including the total principal amount, interest rate, payment dates, and other terms of the notes, have not yet been finalized. 

The offering will be conducted internationally and targeted solely at professional investors. 

Finalization of the bond issuance is subject to market conditions and investor interest, Meituan added.