Baidu Announces Pricing of CNY4.4 Billion CNY-denominated Senior Notes

Rhea-AI Summary

Baidu (NASDAQ: BIDU), a leading AI company, has announced the pricing of CNY4.4 billion in senior unsecured notes due 2029, with a 1.90% interest rate. The notes are being offered in offshore transactions outside the United States to non-U.S. persons under Regulation S.

The notes offering is expected to close around September 15, 2025, and will be listed on the Hong Kong Stock Exchange. Baidu plans to use the proceeds for general corporate purposes, including debt repayment and interest payments.

Positive

• Successfully priced CNY4.4 billion in senior notes, demonstrating market confidence
• Relatively low interest rate of 1.90% for the notes
• Dual listing on Hong Kong Stock Exchange enhances liquidity and accessibility

Negative

• Increases company's debt obligations
• Part of proceeds used for existing debt repayment rather than growth initiatives

Insights

Financial Analyst

Baidu raises CNY4.4B in offshore notes at 1.90% to refinance debt and strengthen its financial position.

Baidu's CNY4.4 billion senior notes offering represents a strategic financial move with several key implications. The 1.90% interest rate on these 4-year notes is notably competitive in the current market environment, indicating strong investor confidence in Baidu's creditworthiness despite recent market volatility.

The company's decision to denominate these bonds in Chinese Yuan rather than US dollars is particularly significant. This approach helps Baidu reduce currency exchange risks by better aligning its debt obligations with its revenue streams, which are predominantly generated in China. The offshore structure allows international investors to participate while providing Baidu with flexibility in its global financial operations.

Baidu's stated intention to use proceeds for "repayment of certain existing indebtedness" suggests a proactive debt refinancing strategy. By potentially replacing higher-interest debt with these 1.90% notes, the company could meaningfully reduce its interest expense burden, improving overall financial efficiency. This debt management approach demonstrates disciplined capital allocation by the management team.

The listing on the Hong Kong Stock Exchange further enhances the notes' liquidity and appeal to Asian investors. This issuance strengthens Baidu's financial foundation as it continues investing in its AI capabilities while maintaining a balanced approach to leverage. The transaction timing also suggests the company is taking advantage of favorable market conditions before potential changes in the interest rate environment.

BEIJING, Sept. 8, 2025 /PRNewswire/ -- Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888 (HKD Counter) and 89888 (RMB Counter)), ("Baidu" or the "Company"), a leading AI company with strong Internet foundation, today announced the pricing of its offering of CNY4.4 billion aggregate principal amount of 1.90% senior unsecured notes due 2029 (the "Notes"). The Notes were offered in offshore transactions outside the United States to certain non-U.S. persons (the "Notes Offering") in reliance on Regulation S under the United States Securities Act of 1933, as amended (the "Securities Act"). The Company expects to close the Notes Offering on or about September 15, 2025, subject to the satisfaction of customary closing conditions.

The Company intends to use the net proceeds from the Notes Offering for general corporate purposes, including repayment of certain existing indebtedness, payment of interest and general corporate purposes.

The Notes have not been and will not be registered under the Securities Act or any state securities laws. They may not be offered or sold in the United States or to, or for the account or benefits of, U.S. persons (as defined in Regulation S under the Securities Act) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. 

The Notes are expected to be listed on The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange").

This announcement shall not constitute an offer to sell or a solicitation of an offer to purchase any securities, in the United States or elsewhere, and shall not constitute an offer, solicitation or sale of the securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. Any offering of securities will be made by means of one or more offering documents, which will contain detailed material information about the Company and its operational and financial performance.

This announcement contains information about the pending Notes Offering, and there can be no assurance that the Notes Offering will be completed.

About Baidu

Founded in 2000, Baidu's mission is to make the complicated world simpler through technology. Baidu is a leading AI company with strong Internet foundation, trading on Nasdaq under "BIDU" and HKEX under "9888". One Baidu ADS represents eight Class A ordinary shares.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Baidu may also make written or oral forward-looking statements in its periodic reports to the SEC, in announcements made on the website of the Hong Kong Stock Exchange, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Baidu's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Baidu's growth strategies; its future business development, including development of new products and services; its ability to attract and retain users and customers; competition in the Chinese Internet search and newsfeed market; competition for online marketing customers; changes in the Company's revenues and certain cost or expense items as a percentage of its revenues; the outcome of ongoing, or any future, litigation or arbitration, including those relating to intellectual property rights; the expected growth of the Chinese-language Internet search and newsfeed market and the number of Internet and broadband users in China; Chinese governmental policies relating to the Internet and Internet search providers, and general economic conditions in China and elsewhere. Further information regarding these and other risks is included in the Company's annual report on Form 20-F and other documents filed with the SEC, and announcements on the website of the Hong Kong Stock Exchange. Baidu does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this announcement is as of the date of the announcement, and Baidu undertakes no duty to update such information, except as required under applicable law.

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SOURCE Baidu, Inc.

FAQ

What is the size and interest rate of Baidu's new senior notes offering?

Baidu is offering CNY4.4 billion in senior unsecured notes with a 1.90% interest rate, due in 2029.

When will Baidu's 2025 notes offering close?

The notes offering is expected to close on or about September 15, 2025, subject to customary closing conditions.

How will Baidu (BIDU) use the proceeds from the 2025 notes offering?

Baidu will use the proceeds for general corporate purposes, including repayment of existing debt, interest payments, and other corporate needs.

Where will Baidu's new CNY notes be listed?

The notes are expected to be listed on The Stock Exchange of Hong Kong Limited (Hong Kong Stock Exchange).

Who can purchase Baidu's 2025 senior notes?

The notes are offered in offshore transactions outside the United States to non-U.S. persons under Regulation S of the Securities Act.