Meituan offers 5-, 10-year dim sum bonds at 2.90 percent and 3.60 percent guidance, sheet shows

Chinese food delivery company Meituan (3690) is offering 5- and 10-year offshore yuan bonds, or dim sum bonds, with initial price guidance of around 2.90 percent for the 5-year and 3.60 percent for the 10-year, according to a term sheet seen by Reuters.

• Meituan plans to use the proceeds to refinance existing offshore debt and for general corporate purposes
• Reuters reported on Monday that Meituan aimed to raise about 7 billion yuan (US$1.05 billion) through the deal
• Meituan did not immediately respond to a Reuters request for comment on Tuesday 
• Meituan returned to profitability in the second quarter as it emerged from a tough year of subsidy-fuelled competition in China's delivery market
• The bonds are senior unsecured debt, meaning they are not backed by specific assets
• The bonds 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

Reuters

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