Hong Kong-listed smartphone maker Xiaomi is planning an 8 billion yuan ($1.13 billion) panda bond issue to fund coronavirus prevention efforts, its first onshore issuance, two sources with knowledge of the matter told Reuters.
The first 1 billion yuan tranche of private placement notes will have a fixed coupon and a tenor of three years, the sources said. They said that proceeds from the bonds will be used to repay interest on loans for projects within China, replenish working capital and support virus-fighting efforts.
Bank of China will be the lead underwriter and bookrunner on the deal, with Industrial and Commercial Bank of China as the joint underwriter, the sources said.
Panda bonds are yuan-denominated bonds from non-Chinese issuers which are sold in China.
Xiaomi did not immediately respond to Reuters' request for comment.
Xiaomi said last week that it had resumed operations for more than 80% of its supply chain in the wake of China's coronavirus outbreak.