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Home News Meituan Seeks Up to $2 Billion Through Dollar Bond Offering

Meituan Seeks Up to $2 Billion Through Dollar Bond Offering

by Barbara

China’s Meituan is looking to raise as much as $2 billion through a dollar bond issuance, with offerings spanning 3.5 and 5 years, according to two sources familiar with the matter and a term sheet reviewed by Reuters on Tuesday.

The sources, who requested anonymity as the information is not yet public, indicated that Meituan plans to generate $1 billion from each tranche of the bond deal.

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Initial pricing guidance suggests that the 3.5-year bond will be offered at a spread of approximately 145 basis points over 3-year U.S. Treasury yields, while the longer-term bond is expected to be priced at around 160 basis points over 5-year Treasury yields.

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The proceeds from this bond issuance are intended for refinancing existing offshore debt, as detailed in the term sheet. This includes a $1.48 billion convertible bond set to mature in 2027, which becomes callable next year. Some of the funds raised from this bond offering will be allocated to finance this upcoming obligation, according to one of the sources.

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Meituan, a prominent player in the food delivery sector, has yet to respond to Reuters’ request for comment regarding the bond issuance.

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