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China tech

Baidu braves market tumult with bond issuance

China internet search company's plan hits as market activity quietly resumes

Baidu is expected to use the proceeds to get around China's capital outflow controls and redeem offshore bonds.   © Reuters

HONG KONG -- Chinese internet search company Baidu intends to tap debt markets with five-year and 10-year dollar-denominated bonds, a sign of rising investor appetite for corporate credit despite the coronavirus outbreak.

Baidu is offering an initial yield guidance of around 312 basis points over the equivalent U.S. Treasury, according to a term sheet seen by Nikkei. That compares with the current spread of about 259 basis points over Treasurys for a five-year Baidu note issued in 2018, which was sold at 162.5 basis points.

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