Executive Summary

• Meituan is looking to issue new 5.5Y/7Y/10Y $ 144A/Reg S bonds at initial price talks (IPTs) of T+130/140/150 bp, as well as 5Y/10Y CNH Reg S bonds at IPTs of 3.1/3.5%; the use of proceeds are for general corporate purpose, which includes the repayment of its $1.5 bn Apr-2028 convertible bond (CB) that turns puttable in Apr-2026; Meituan targets to issue a total of $3 bn, with approximately $2 bn allocated to the USD tranches and $1 bn to the CNH tranches; though, the USD/CNH split is subject to investor demand.

• We see fair value of the new MEITUA 5.5Y/7Y/10Y $ bonds at T+90/93/100 bp based on the secondary curve of MEITUA and its Asia A-/BBB+ rated corporate peers, this represents a 40/47/50 bp tightening from the IPTs of T+130/140/150 bp.

• We see fair value of the new MEITUA 5Y/10Y CNH bonds at 2.65%/3.10% based on the secondary curve of its China tech peers (BIDU, TENCNT, BABA); this represents a 45/40 bp tightening from the IPT of 3.10%/3.50%.

• The credit strength of Meituan is underpinned by its leading position in the food/on-demand delivery and hotel/travel segment, integrated platform which provides cross-selling opportunities, as well as healthy liquidity and robust net cash position. These helps to mitigate its key credit weaknesses which includes the intense competition faced against food/on-demand delivery and local services peers, which also results in a deteriorating credit outlook for Meituan over the next 6-12 months, and higher operational and execution risk with its overseas expansion.