(Bloomberg) — Chinese carmaker Great Wall Motor Co. is considering a convertible bond offering to raise as much as $1 billion, according to people familiar with the matter.
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The company, one of the largest independent auto manufacturers in China, has held early discussions with advisers about the potential sale, the people said, asking not to be identified as the information isn’t public.
Deliberations are preliminary and Great Wall Motor may decide against an offering, the people said. The company didn’t respond to a request for comment.
Hong Kong-listed shares of Great Wall Motor extended losses after the Bloomberg News report, dropping 3.9% at the close on Thursday. The stock has gained 22% this year, giving it a market value of $26.6 billion.
Great Wall Motor would join a growing number of Chinese companies that have sold convertible bonds this year to get cheaper financing than through traditional debt, given higher borrowing costs.
They have been especially popular in the tech sector — Alibaba Group Holding Ltd. sold a record $5 billion convertible bond in May — but companies in other areas have resorted to the instrument as well. Ping An Insurance (Group) Co. raised $3.5 billion in convertibles in July.
(Updates with shares in fourth paragraph.)
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