Qifu Technology Secures $690 Million in Convertible Notes for Growth
Qifu Technology Completes Significant Notes Offering
Qifu Technology, Inc. (NASDAQ: QFIN; HKEx: 3660) has made a notable mark in the financial technology sector with its recent completion of a cash-par settled convertible senior notes offering. This successful initiative raised an impressive total of US$690 million, demonstrating Qifu's robust position in the AI-empowered Credit-Tech landscape.
Purpose and Strategic Use of Proceeds
The funds obtained from this offering will be strategically utilized for repurchasing American depositary shares (ADSs) as well as class A ordinary shares. This undertaking is part of the newly formed March 2025 Share Repurchase Plan, which the board of directors has authorized. This new plan complements the existing share repurchase program initially announced in the past year, reflecting the company’s dedication to maximizing shareholder value.
Accretive Impact on Earnings
Qifu Technology professionals anticipate that this offering will lead to an immediate increase in earnings per ADS for 2025. This positive expectation is supported by the execution of share repurchases worth approximately US$230 million, facilitated through privately negotiated transactions with certain purchasers of the Notes. The promising cash-par conversion settlement mechanism further strengthens this financial strategy.
Details of the Convertible Notes
The convertible notes issued by Qifu will be unsecured obligations with a competitive interest rate of 0.50% annually. Interest payments are scheduled semiannually on April 1 and October 1, beginning in 2025, with maturity set for April 1, 2030, unless otherwise settled prior to this date. The initial conversion rate is pegged at 16.7475 ADS per US$1,000 principal amount, translating to a conversion price of approximately US$59.71 per ADS.
About Qifu Technology's Operations
As one of the leading players in the AI-driven Credit-Tech ecosystem, Qifu Technology focuses on providing innovative technology services aimed at enhancing the financial lifecycle for various clients, including financial institutions, consumers, and small to medium enterprises (SMEs). Its approach hinges on leveraging advanced machine learning models and comprehensive data analytics to ensure that credit services are personalized and accessible to all stakeholders involved.
Commitment to Innovation
Qifu Technology’s commitment to pioneering change within the financial sector is reflected in their ability to continuously adapt and innovate. They strive to meet the evolving demands of their clients and enhance the accessibility of credit services. This spirit of innovation has positioned the company as a preferred partner for technological solutions in the Credit-Tech domain.
Frequently Asked Questions
What was the total amount raised in the notes offering?
Qifu Technology raised a total of US$690 million through the convertible senior notes offering.
How does the company plan to use the proceeds?
The proceeds will be used for repurchasing ADSs and class A ordinary shares to enhance shareholder value.
When did the notes become effective?
The notes are expected to impact earnings per ADS beginning in 2025.
What is the interest rate of the convertible notes?
The convertible notes have an interest rate of 0.50% per year, payable semiannually.
How does Qifu Technology support financial institutions?
Qifu provides technology services across the loan lifecycle, enhancing the efficiency of borrower acquisition, credit assessments, and financial matching.
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