JD.com Aims to Raise $1.5 Billion Through 2029 Convertible Bonds

Filipe Pacheco, Bloomberg News

The JD.com Inc. headquarters in Beijing. , Bloomberg

(Bloomberg) -- JD.com Inc. sold $1.75 billion of bonds due in five years that can be converted into the Chinese e-commerce retailer’s equity.

The bonds have a coupon of 0.25%, and can be converted into US-listed stock at $45.70 per share, or about 35% above the equivalent closing price in Hong Kong. The company granted an over-allotment option to increase the sale from an original $1.5 billion, according to a statement on Tuesday.

The convertible sale is set to be the largest of its kind by an Asian firm this year, according to data compiled by Bloomberg. JD.com plans to use proceeds for share repurchases, overseas expansion, improvement of its supply chain network and other purposes, according to the terms. Holders of the notes may require the company to repurchase all or part of the bonds for cash on June 1, 2027 or in the event of certain fundamental changes, according to the statement.

The company also said it plans to buy back 14 million American depositary shares.

Bank of America Corp., Goldman Sachs Group Inc., Haitong Securities Co. and UBS Group AG are bookrunners of the bond issuance.

--With assistance from Evelyn Yu and Lin Cheng.

(Updates with company statement in second paragraph)