Chinese online retailer JD.com is raising $1.5 billion via a convertible bond sale, according to the company’s regulatory filings on Tuesday, reports Reuters. The five-year put-three deal was launched after the Hong Kong trading session closed, and ahead of the stock’s open in New York.
The deal is being marketed with a zero to 0.25% coupon paid semi-annually, according to a term sheet seen by Reuters. Potential investors are being told there is a 35% conversion premium over the reference price of JD.com of HK$132 ($16.91), the stock’s closing price on Tuesday.
At $1.5 billion, JD.com’s convertible bond is the largest of its kind in Asia so far in 2024, according to Dealogic data. It is the second largest in the past 17 months after SK Hynix raised $1.7 billion in a convertible bond in April last year.