JD.com [NASDAQ:JD, HKG:9618] has started reaching out to potential investors about a jumbo convertible bond offer intended to fetch more than USD 1bn, according to four market participants.

The Chinese e-commerce giant’s American Depositary Receipts CB offer is being arranged by a handful of banks including UBS and Bank of America, according to three participants. This news service flagged the potential deal in a weekly report published on 17 May.

The deal’s final size and terms are unclear, though it could be as big as in the north of USD 1.5bn, the first said.

The second and fourth participants said the deal was aimed for launch around mid-week, though the timing could change depending on the wall crossing.

The deal’s terms, according to the second participant, are going to be inexpensive.

The maiden equity-linked bond sale by JD.com will very likely outsize the USD 1bn dual-tranche note issued by Chinese electric car maker NIO Inc. [NYSE:NIO]. The last time a Chinese issuer raised more than USD 1bn from the hybrid market was in April 2021, when food delivery and review platform Meituan [HKG:3690] sold two tranches of USD 1.5bn CBs in a deal arranged by Goldman Sachs and Bank of America.

JD.com’s straight bonds maturing 2030 traded at 91 in early afternoon today (20 May), yielding around 5.3%, with an implied credit of 115 basis points, the second participant said.

JD.com’s shares ended 2.9% at USD 35.27 – the highest level since August 2023 – Friday in New York.

UBS declined to comment. Bank of America declined to comment. JD.com’s investor relations department didn’t answer repeated phone calls made by this news service.