Meituan Targets About $1 Billion in Its Second Offshore Yuan Bond Issue
Key Facts
China’s Meituan is seeking to raise the equivalent of about $1 billion through an offshore yuan bond issue, according to a report published by the Business Times on October 26, 2026. The final size of the deal has not been announced, while Reuters said the company had arranged investor meetings for an offering that may include two tranches. Meituan may issue senior unsecured notes with maturities of 5 and 10 years, according to Reuters, with the final structure depending on market conditions. The proposed issue would be the company’s second offering in the dim sum bond market, referring to yuan-denominated bonds issued outside mainland China. The Business Times said proceeds would be used mainly to refinance existing yuan-denominated loans outside China, while Reuters reported that the purposes also include general corporate use.
The issue is expected to be priced on Tuesday, October 27, according to the Business Times report, while preliminary terms did not disclose the deal’s size or price, Reuters reported. The Business Times said Meituan had received regulatory approval to raise a larger amount offshore and had retained part of the quota for refinancing dollar-denominated bonds when market conditions improve. The quota expires in September 2027, setting a time frame for its use. Reuters expected the bonds to be rated Baa1 by Moody’s and BBB+ by Standard & Poor’s and Fitch. The 5- and 10-year maturities that may be included in the current deal are similar to those of the yuan tranches in Meituan’s previous issue.
Meituan raised about $3 billion through dollar securities and offshore yuan bonds in 2025, its largest conventional bond issue, according to the Business Times. As part of that deal, the company issued offshore yuan bonds totaling 7.08 billion yuan in November 2025, within a multi-tranche offering with a total value equivalent to $3 billion, according to Linklaters. The yuan tranches then had maturities of 5 and 10 years. The new offering comes as the dim sum market has expanded: issuance by government entities and companies outside mainland China exceeded 1 trillion yuan during 2026, a record, the newspaper said. That provides the market backdrop for Meituan’s deal, while its size and pricing details remain undisclosed.
The financing move comes amid the company’s expected capital needs: Meituan expects capital expenditure of about 20 billion yuan in 2026, with a slight increase in 2027, according to the Business Times. This gives debt refinancing weight in managing funding needs, alongside the general corporate uses cited by Reuters. On the business front, revenue was 104.6 billion yuan in the quarter ended June 30, 2026, up 14.4% year over year and above analysts’ expectations, Reuters reported. Adjusted net profit was 2.16 billion yuan in the second quarter, following a loss of 4.97 billion yuan in the first quarter, compared with a profit of 1.49 billion yuan in the same period a year earlier. Meituan announced in August that it had posted a surprise quarterly profit and slowed its overseas expansion, according to the report.
On competition, Reuters said discounts on food-delivery platforms had eased since the start of 2026, after repeated criticism from Chinese regulators, who described the instant-retail battle as a “race to the bottom.” The Business Times report also pointed to a cooling in competition in China’s food-delivery and retail businesses following a regulatory campaign. These developments reflect an operating environment different from the period of pricing pressure, alongside the company’s return to profit in the second quarter, according to figures cited by Reuters. In the market, MPNGY shares closed at $18.15 on October 23, 2026, according to EL7 data. The next milestone for the deal is the expected pricing date on October 27, when disclosed details are due to show the issue size and final terms.