Baidu raises $1.5bn in bond issue

The owner of China’s leading search engine Baidu (BIDU.NASDAQ, B1C.FRA) raised US$1.5 billion in its first two-part bond sale, Bloomberg reported, citing data it compiled. The company sold 2.25%, five-year debentures with a margin 1.6 percentage points higher than similar term treasuries and 3.5%, decade-long securities with a relative margin of 1.5 percentage points, with each type raising US$750 million. The deal was handled by Goldman Sachs Group (GS.NYSE) and JPMorgan Chase (JPM.NYSE). Funds will be used for running the business and to refinance existing debt. Moody’s Investors Services gave Baidu a grade of A3 for the first time on November 5. Baidu’s “leading position is supported by its well-established brand, continuous improvement of information search algorithms, growing user base, and continuous launches of new services and products, ” Alan Gao, an analyst at Moody’s, said in a report.