Chinese food delivery giant Meituan is planning to issue dollar bonds to refinance its offshore debt, the company said in a filing.

Meituan has mandated several banks to arrange a series of calls with global fixed income investors starting from Monday.

The size, interest rate and other terms of the proposed dollar-denominated senior notes have not been determined, according to a filing with the Stock Exchange of Hong Kong. Bloomberg previously reported that the company is working with investment banks on a bond offering that could be worth more than US$1 billion , citing people familiar with the matter.

The bond plan comes after Meituan’s credit rating was upgraded by Moody’s Ratings, S&P Global Ratings and Fitch Ratings earlier this month. The agencies boosted the company’s ratings to Baa2, BBB+ and BBB respectively, pointing to its increased profitability and revenue growth.

The firm posted 21% sales growth and achieved a record-high gross margin for the last quarter despite fears about a consumer spending slowdown in China. Bolstered by these strong results, Meituan’s Hong Kong-listed stock has jumped more than 60% this year.

Meituan’s decision to issue a conventional bond contrasts with Chinese tech giants Alibaba Group Holding Ltd and JD.com Inc, which have recently opted for convertible bond sales. 

  - Bloomberg