A unit of Chinese ride-hailing firm Didi Chuxing has submitted an application to raise 10 billion yuan (US$1.6 billion) through an issuance of asset-backed securities, Reuters reports.
Didi, which said in December it had raised US$4 billion to support its overseas expansion, did not say how the funds would be used.
The funds will be raised by Dirun (Tianjin) Technology Co. Ltd., according to a filing published on the Shanghai Stock Exchange’s bond market website. Dirun’s sole shareholder is Didi Chuxing, local government records show.
The state-run Beijing News newspaper, which reported the proposed fundraising on Saturday, cited sources as saying Didi was also preparing to launch a meal delivery business in the eastern city of Wuxi on April 1.
Didi, which holds more than 87 percent of the Chinese private ride-share market, is facing new challengers with several firms including Tencent-backed (00700.HK) meal delivery company Meituan-Dianping announcing plans to launch ride-hailing services.
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