Chinese food delivery company Meituan (3690) has launched an 8 billion yuan (US$1.2 billion) dual tranche offshore yuan bond, comprising a 4.5-billion-yuan five-year tranche and a 3.5-billion-yuan 10-year tranche, according to a term sheet seen by Reuters.
- The company launched the five-year tranche at a yield of 2.50 percent and the 10-year tranche at 3.10 percent, after tightening from initial price guidance of around 2.90 percent and 3.60 percent, respectively. Combined orders had exceeded 20 billion yuan (US$3 billion) before launch
- 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 through the deal. The launched deal size of 8 billion yuan is therefore above that target
- Meituan did not 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
- The five-year tranche will mature on November 3, 2031, while the 10-year tranche will mature on November 3, 2036.
- CITIC Securities, Goldman Sachs, BofA Securities, China Construction Bank, ICBC, Bank of Communications and HSBC are among the lead banks for the deal
Reuters
