Fosun Group is planning to raise as much as 21 billion yuan ($3.2 billion) selling local bonds as the Chinese insurance-to-pharmaceutical conglomerate refinances debt and increases its investments inside the country, according to people familiar with the matter.
Fosun unit Shanghai Fosun Hi Technology Group Co. intends to offer 6 billion yuan of medium-term notes after completing registration last month, the people said. It also plans to apply by February for authorization to issue 15 billion yuan of short-term commercial paper, the people said. The timing of the planned sales is yet to be determined, they said, asking not to be identified because the details are private.
Fosun is among private-sector giants in China that have faced greater regulatory scrutiny this year after authorities cracked down on financing for outbound investments. In response, the company has focused more on local deals.
Earlier this month the company agreed to buy an 18 percent stake in Tsingtao Brewery Co., China’s third-largest beermaker, for $847 million. On Thursday, the company was among backers for a 1 billion yuan funding round for bike-sharing startup Hellobike. Meanwhile, Fosun has explored selling its stake in Hollywood production house Studio 8 Inc., people familiar with the matter said this week.
A representative for Fosun couldn’t immediately comment on Thursday.
Fosun Hi Technology issued 9.2 billion yuan of notes this year, according to data compiled by Bloomberg.