Baidu seeks $2 billion in bonds exchangeable into Trip.com shares

Chinese technology firm Baidu Inc. is offering as much as $2 billion in bonds that are exchangeable into Hong Kong shares of online-travel company Trip.com Group Ltd.

The exchangeable bonds are due in 2032, Baidu said in a statement Friday. The Beijing-based company said it plans to use proceeds from the offering to repay debt, pay interest and spend on general corporate purposes. 

Baidu, a Chinese internet company known for its search engine, is a significant investor in Trip.com, holding a 10.7 per cent stake.

The bonds have a 0% coupon, according to terms of the deal seen by Bloomberg News. 

JPMorgan Chase & Co., Morgan Stanley, Goldman Sachs Group Inc. and Bank of America Corp. are arranging the deal, the terms show.