JD.com plans to issue $1 billion of dual-tranche bonds, its first bond offering in three years, the Chinese e-commerce giant said Wednesday.
The borrowing includes a $700 million, 3.375%, 10-year tranche and a $300 million, 4.125%, 30-year tranche.
After underwriting fees and issuance expenses, JD.com expects to net $988.3 million, which it plans to use for general corporate purposes and refinancing, the company said in a statement. The company has a $500 million bond issued in 2016 that matures next year.
Bank of America Securities Inc. and UBS AG (FBG) Hong Kong are underwriters.
As of the end of September, JD.com’s total debt was up nearly 20 billion yuan ($2.88 billion) from the end of 2018, to 152.1 billion yuan. Meanwhile, the e-commerce company has maintained ample cash flow. In each of the first three quarters of 2019, JD.com reported positive cash flow. As of Sept. 30, it had free cash flow of 15.6 billion yuan and operating cash flow of 30.8 billion yuan.
The company reported 28% growth in third-quarter revenue to 134.8 billion yuan, and its non-GAAP net income attributable to ordinary shareholders rose 160.6% to 3.1 billion yuan.
Contact reporter Denise Jia (firstname.lastname@example.org)