Baidu announces proposed offering of CNY-denominated senior notes

BEIJING - Chinese tech giant Baidu, Inc. (NASDAQ:BIDU and HKEX: 9888/89888), currently valued at $35.05 billion, announced Sunday its plan to offer CNY-denominated senior unsecured notes in offshore transactions to non-U.S. persons, subject to market conditions. According to InvestingPro data, the company maintains a healthy financial position with a current ratio of 1.85, indicating strong liquidity to meet short-term obligations.

The AI and internet company stated that principal amounts, interest rates, maturity dates and other terms will be determined at the time of pricing. According to the press release statement, Baidu intends to use proceeds from the offering for general corporate purposes, including repayment of existing debt and interest payments. The company currently maintains $12.82 billion in total debt, though InvestingPro analysis shows it holds more cash than debt on its balance sheet.

The notes will not be registered under the U.S. Securities Act of 1933 and cannot be offered or sold in the United States except under exemption from registration requirements.

Baidu noted that the offering will be made through offering documents containing detailed information about the company’s operational and financial performance. The company also cautioned that there is no guarantee the notes offering will be completed.

Founded in 2000, Baidu describes itself as "a leading AI company with strong Internet foundation" and trades on Nasdaq under "BIDU" and on the Hong Kong Stock Exchange under "9888," with one Baidu ADS representing eight Class A ordinary shares.

The announcement comes as part of Baidu’s ongoing financial management strategy, though specific financial targets for the offering were not disclosed in the announcement.

In other recent news, Baidu, Inc. has announced a strategic partnership with Uber Technologies, Inc. to deploy Baidu’s Apollo Go autonomous vehicles on the Uber platform. This multi-year agreement aims to introduce thousands of driverless vehicles in markets outside the U.S. and mainland China, with initial deployments expected in Asia and the Middle East later this year. Additionally, Baidu has appointed Haijian He as its new Chief Financial Officer in a management reshuffle. Haijian He brings extensive experience from his previous roles at Kingsoft Cloud Holdings Limited and major financial institutions like Goldman Sachs and Bank of America Merrill Lynch. These recent developments highlight Baidu’s ongoing efforts to expand its technological reach and strengthen its financial leadership team.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.