Davis Polk, Maples Group, Linklaters, Han Kun Law Offices and JunHe have advised Meituan on its dual?currency offshore bond issuance worth USD3 billion, setting a record for the company’s largest-to-date offshore fundraising and marking its first offshore renminbi issuance.
The issuance comprises RMB7.08 billion (USD994.7 million) and USD2 billion of senior notes. The offshore renminbi tranche includes a five?year RMB2.08 billion note with a 2.55% coupon and a 10?year RMB5 billion note at 3.1%. The US?dollar tranche consists of a 5.5?year USD600 million note at 4.5%, a seven?year USD600 million note at 4.75% and a 10-year USD800 million note at 5.125%.
Han Kun advised the issuer on PRC law, led by partners Lu Zaiguang and Li Hanmeng; Davis Polk counselled on US and Hong Kong law, with partners He Li and James Lin leading the team; and Maples acted as 惭别颈迟耻补苍’蝉 Cayman Islands legal counsel, led by Partner Karen Zhang Pallaras.
JunHe acted as the initial purchasers’ PRC legal counsel, led by partner Yu Yongqiang with partner Wan Jing on the team, while Linklaters advised on US law.
Meituan, China’s leading lifestyle e?commerce platform, operates services including food delivery, catering and travel. The company previously issued USD2 billion worth of bonds in 2020, followed by USD2.98 billion of convertible bonds in 2021 and USD2.5 billion in two tranches of bonds in 2024.
Proceeds from the latest offering would be used for refinancing existing offshore debt and for general corporate purposes, said Meituan.
惭别颈迟耻补苍’蝉 market position and share price have come under pressure this year as rivals JD.com and Taobao entered the food-delivery and instant-retail markets with steep discounts.
Other internet giants have also tapped the bond market recently: Baidu issued RMB4.4 billion of senior unsecured notes on 9 September, while Alibaba completed a zero?coupon convertible senior notes issue valued at USD3.2 billion on 16 September.
