Meituan: New USD and CNH Bonds
Stephanie Sim, CFA - Analyst, Strategy and East Asia Corporates, CreditSights
Pius Xue, CFA - Senior Analyst, CreditSights
4 November 2025
Insights into Meituan: New USD and CNH Bonds, including:
- Executive Summary & Credit Recommendation: Get the highlights of our credit recommendation on Meituan New USD and CNH Bonds, including issuer ratings (Baa1/A-/BBB+) and credit outlook for the next 6–12 months.
- Bond Issuance Structure: Explore details of Meituan’s planned $3bn bond issuance, covering USD and CNH tranches, maturities (5.5Y/7Y/10Y for USD, 5Y/10Y for CNH), and use of proceeds for corporate funding and convertible bond repayment.
- Relative Value & Fair Value Assessment: See how Meituan New USD and CNH Bonds price against Asia tech peers, with fair value estimates showing significant tightening versus initial price talks, and cross-currency swap attractiveness for the 10Y bond.
- Financial & Competitive Outlook: Review Meituan’s recent financial performance, including weakening EBITDA margin, strong liquidity, and intense competitive pressures from peers like Alibaba and JD, which may impact future debt metrics.
- Risk Factors & Rating Agency Criteria: Learn about key risks, rating agency upgrade/downgrade criteria, and what could drive changes in Meituan’s ratings such as deteriorating profitability, elevated capex, and overseas operational expansion.
Executive Summary
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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.
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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.
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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%.
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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.
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