(Bloomberg) — Baidu Inc. is marketing a two-part dollar bond, according to a person familiar with the matter, marking the first major global debt sale by a Chinese tech firm since Beijing escalated a crackdown on private enterprise.
The Internet search giant, an investment-grade issuer, is looking to price 5.5-year and 10-year notes at about 115 basis points and 150 basis points, respectively, above comparable Treasuries, said the person, who asked not to be identified because they’re not authorized to speak about it publicly. A Baidu dollar bond maturing in 2026 was trading Wednesday at a spread of 83 basis points, according to Bloomberg-compiled data.
The firm earlier received a $1 billion bond sale quota from the National Development and Reform Commission, China’s top economic planning agency. Borrowers can choose whether or not to use the full amount.
The sale would be Baidu’s first return to the dollar bond market since October and follow mobile phone maker Xiaomi Corp.’s $1.2 billion offering in July that also included a green note. Planning to use the proceeds for general corporate purposes and debt repayment, Baidu is now spending heavily to reposition itself as an artificial intelligence company with use cases in everything from ride-hailing to smart speakers and the cloud.
Offshore bonds sold by China’s major tech firms have enjoyed robust demand in recent years, with strong support from both local and U.S. buyers. Xiaomi’s offering in July, for example, attracted more than $7 billion of orders, even as regulators moved to increase scrutiny of the industry.
(Adds 2026 bond’s spread in the second paragraph.)
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