Baidu Inc raised $1 billion in a two-phase U.S. dollar sustainability bond, negotiating better-than-expected terms, according to a report by Reuters on Thursday.
- It was the first major debt fundraising by a Chinese tech firm since the latest onslaught of regulatory actions that start in July. The 5.5-year portion bond raised $300 million, and the 10-year portion secured $700 million.
- Baidu’s dominance of China’s search market underpinned demand, and the final price was significantly cheaper than when first flagged to investors. Demand from investors expanded by over $5 billion.
- The shorter-dated bond was priced at U.S. Treasuries plus 83 basis points compared to the initial guidance of plus 115 basis points.
Baidu stated that it was uncertain whether new Chinese rules requiring firms that plan to list overseas and similar implications for firms that intend to perform further equity or debt offerings. Chinese firms have raised $121.2 billion in U.S. dollar debt funding in 2021. Baidu Inc down -2.44%.