Chinese video streaming platform iQIYI to raise $600 million through convertible bonds

(Reuters) - Chinese video streaming company iQIYI Inc said on Wednesday it would raise $600 million through the issue of convertible notes and use the funds to repay debt.

U.S.-listed shares of iQIYI were down nearly 7% in premarket trading.

Video-streaming app Bilibili,, e-commerce group Pinduoduo and peers have recently piled into the convertible debt boom. Bilibili in January raised money through a discounted sale of its American depositary shares for repurchasing a convertible note.

iQIYI, China's answer to Netflix, has recorded quarterly profits only a couple of times and is expected to report its first annual profit this fiscal year since going public.

iQIYI has made several hit drama series, including "The Long Night" and "The Wind Blows From Longxi". Its original variety shows, "The Rap of China" and "The Big Band", have also been major topics on social media.

The convertible notes will mature on March 15, 2028, the company said.

(Reporting by Nivedita Balu in Bengaluru; Editing by Shailesh Kuber)