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JD.com plans to borrow US$1.5 billion from investors through a convertible senior notes offering due in 2029. The actual borrowing will depend on market conditions and other factors.
The money raised will be used to buy back some of JD.com’s shares, support global business growth, improve the supply chain, and cover day-to-day operational costs.
Early investors will have the option to buy an additional US$225 million in notes within a 30-day period starting from the offering date.
These notes will become JD.com’s senior unsecured obligations, meaning they are a high-priority debt without specific assets backing them. If not converted to stock, redeemed, or bought back by JD.com, they will be due on June 1, 2029.
However, after the announcement of convertible senior notes, the firm’s stock dropped by 3.5%.
JD.com’s board of directors had approved a new share repurchase program recently. This allows the firm to repurchase up to US$3 billion worth of shares over the next three years through March 2027.
The Chinese ecommerce platform recently also announced its quarterly results, which showed a 7% increase in revenue for Q1 2024 compared to the same period last year. Income from operations also reached US$1.1 billion, 20% higher than in the year-ago period.
See also: Asia layoff tracker: DailySocial dismisses entire workforce, Ninja Van reduces staff by 10%
Editing by Miguel Cordon and Dhania Putri Sarahtika
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