- JD.com seeks to raise $1.5 billion through convertible senior notes due in 2029.
- Early investors can snag an extra $225 million within a 30-day window.
- Despite a 3.5% stock tumble, JD.com reported strong Q1 2024 results.
Dishing out debt like it’s hot
Chinese e-commerce powerhouse JD.com is cooking up a plan to borrow $1.5 billion from investors by serving up a delectable platter of convertible senior notes due in 2029.
The actual borrowing amount will depend on market conditions and other secret ingredients. The proceeds from this financial feast will be used to buy back shares, support global business growth, spice up the supply chain, and keep the lights on in the JD.com kitchen.
Early birds get the juiciest worms
Early investors will have the chance to snag an extra $225 million in notes within a 30-day window starting from the offering date. These notes will be JD.com‘s senior unsecured obligations, which is just a fancy way of saying they’re the VIPs of the debt world without any specific assets backing them up.
If not converted to stock, redeemed, or bought back by JD.com, these notes will be ready to hatch on June 1, 2029.
After JD.com announced its convertible senior notes, the company’s stock took a 3.5% tumble. But fear not, because JD.com‘s board of directors had already given the green light to a new share repurchase program, allowing the firm to buy back up to $3 billion worth of shares over the next three years through March 2027.
Despite the market’s initial jitters, JD.com reported strong quarterly results, a 7% boost in revenue, and a 20% jump in income from operations for Q1 2024 compared to the same period last year.
To read the original article: https://www.techinasia.com/jdcom-gears-15-billion-financing-business-growth
