Meituan seeks to raise US$3 billion in dual-currency bond sale

The company operates online platforms for food delivery and other consumer products

Meituan plans to raise around US$3 billion in what would be its largest regular bond issuance ever, as the company faces intensifying competition in China’s food delivery market.

Meituan is planning to issue US dollar and yuan-denominated senior notes and will use the proceeds for offshore debt refinancing and other general corporate purposes, the company said in an exchange filing on Monday (Oct 27).

Meituan, which operates online platforms for food delivery and other consumer products, is aiming to sell about US$2 billion of dollar notes and the equivalent of US$1 billion of offshore yuan notes in a deal that could come to the market as early as Tuesday, according to sources familiar with the matter. Details could change based on investor feedback, the sources added.

Meituan declined to comment.

Meituan’s planned offering comes as China’s food delivery and retail sectors become more competitive. Rivals, including Alibaba Group Holding and JD.com, have fuelled a price war this year, rolling out steep discounts and incentives to bolster their position in the increasingly crowded market.

Meituan first tapped the US dollar bond market in 2020 with a US$2 billion offering. It then issued US$2.98 billion of convertible bonds in 2021, according to Bloomberg-compiled data. The company returned to the US dollar bond market last year when it sold two notes, raising a total of US$2.5 billion.

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Meituan has a 2.125 per cent US$750 million bond maturing on Tuesday, with its next major offshore regular bond due in 2028, according to Bloomberg-compiled data. BLOOMBERG