(Bloomberg) -- Chinese food delivery giant Meituan is planning to issue dollar bonds to refinance its offshore debt, the company said in a filing.
Meituan has mandated several banks to arrange a series of calls with global fixed income investors starting on Monday.
The size, interest rate and other terms of the proposed dollar-denominated senior notes have not been determined, according to a filing with the Hong Kong Exchange. Bloomberg previously reported that the company was working with investment banks on a bond offering that could be worth more than $1 billion, citing people familiar with the matter.
The bond plan comes after Meituan’s credit rating was upgraded by Moody’s Ratings, S&P Global Ratings and Fitch Ratings earlier this month. The agencies boosted the company’s ratings to Baa2, BBB+ and BBB, respectively, pointing to its increased profitability and revenue growth.
The firm posted 21% sales growth and achieved a record high gross margin for the last quarter despite fears about a consumer spending slowdown in China. Bolstered by these strong results, Meituan’s Hong Kong-listed stock has jumped more than 60% this year.
Meituan’s decision to issue a conventional bond contrasts with Chinese tech giants Alibaba Group Holding Ltd. and JD.com Inc., which have recently opted for convertible bond sales.
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