Chinese video streaming platform iQIYI has launched a $300 million convertible bond offering, as stated in a term sheet examined by Reuters on Thursday. The unsecured senior notes, with a maturity of five years, offer a coupon of 4.25% to 4.75% annually, paid quarterly. The funds raised will be used by iQiyi to repay or repurchase existing debt securities and for general corporate purposes. The deal's joint bookrunners are Bank of America, Morgan Stanley, and JPMorgan, according to the term sheet.

The bond issuance coincides with a recent surge in Chinese tech stocks, fueled by optimism regarding the DeepSeek AI breakthrough and a more favorable stance from authorities towards internet giants. iQiyi's stock has increased by approximately 20% this year, closing at $2.42 per share on Wednesday, resulting in a market capitalization of $2.3 billion, as per LSEG data.

Although iQiyi's total revenue for 2024 declined by 8% year-on-year to 29.2 billion yuan, its net profit saw a significant drop of nearly 60% to 764 million yuan, according to its annual report released on Tuesday.