Raising 10 billion yuan! Report: JD.com considering its first issuance of dim sum bonds

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According to media reports on the 8th, JD Group is considering issuing its first Dim Sum bonds, with a potential fundraising scale of about 10 billion yuan. This batch of offshore RMB-denominated bonds will have a term within 10 years. JD's consideration is still at a preliminary stage and may change, with details including the issuance timeline yet to be determined.

A JD spokesperson responded to the media, stating that the company has no plans to issue such bonds at this stage, and "will not comment on market rumors or speculation."

Dim Sum bonds are favored by Chinese tech companies due to their lower financing costs. According to Bloomberg data, last year the average coupon for three-year US dollar bonds issued by Chinese investment grade corporates was about 5.1%, while the yield for three-year RMB bonds of the same term was around 3.8%.

E-commerce companies flock to the Dim Sum bond market

JD is also seeking to raise at least 1 billion US dollars through equity-linked bonds. According to reports, the company is exploring investor interest in exchangeable bonds, which can be converted into shares of its Hong Kong-listed online healthcare platform, JD Health International.

As the price war in China's food delivery industry intensifies, e-commerce companies such as Alibaba Group and Meituan are pouring into the Dim Sum bond market to raise funds for business expansion. Many Chinese tech companies are also turning to the offshore bond market to seek funds and support their transformation into the artificial intelligence sector.

In October last year, Meituan issued about 7 billion yuan in Dim Sum bonds. Before this, Tencent Holdings and Baidu also conducted similar issuances, with the two companies together selling a total of 23.4 billion yuan in offshore bonds last year, setting the highest record in the industry's history. Alibaba, meanwhile, issued 17 billion yuan in offshore bonds at the end of 2024.

Kuaishou Technology, a TikTok rival which has made progress in the AI-generated video field, is also considering its first offshore bond issuance, and is currently working with investment banks to prepare for a potential transaction.

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