(Yicai Global) March 26 -- Chinese video website iQiyi yesterday announced its proposed offer of USD1 billion in convertible senior bonds that will fall due in 2025.

The company's shares [NASDAQ:IQ] fell 4 percent to USD24.02 on the news. 

The Beijing-based firm also will grant purchasers a 13-day option to buy up to an additional USD150 million of the notes. 

Proceeds will expand and enhance its content, strengthen its technologies, and go for use as working capital and for other general corporate purposes.

iQiyi spent CNY6.5 billion on content in the last quarter, up 97 percent per year, making up 76.5 percent of its overall expenditures. 

"2018 was also a transition year for us, as we devoted more resources toward producing original content which added pressure to our margins,"said Xiaodong Wang, the firm's chief financial officer, at iQiyi's fourth quarter conference on Feb. 22. 

"We believe our investment in premium content will prove to be very rewarding," he added. 

Editor: Ben Armour