AsianFin -- Baidu Inc., operator of China's leading search engine, is planning to raise around 10 billion yuan ($1.4 billion) through the issuance of offshore bonds, according to sources familiar with the matter. This move adds to a recent surge in debt financing by Chinese tech companies.
The offering will include a 5-year bond with an expected yield of 2.6% to 2.8%, and a 10-year bond yielding between 2.8% and 3.0%, the sources said, speaking on condition of anonymity. The deal could price on Wednesday, with the size having increased from earlier estimates of at least 4 billion yuan.
This will mark Baidu's first bond offering since 2021, and is scheduled before a $600 million bond due on April 7, according to Bloomberg data.
Other Chinese tech giants have also been active in the debt markets. In November, Alibaba Group Holding Ltd., co-founded by Jack Ma, issued about $5 billion in dollar and yuan bonds, its first public bond offering in nearly four years following a $5 billion private offering of convertible securities in May.
These financings come amid rapid advancements in artificial intelligence, with major players like OpenAI and Alibaba unveiling new AI models at an accelerated pace. The pace of development has notably surged since DeepSeek's model rivaled the best offerings from OpenAI and Meta Platforms Inc.
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