Hong Kong-based Li & Fung Ltd is considering a potential bond offering and has held meetings with investors to gauge interest, according to people familiar with the matter.

Li & Fung representatives met with investors in Hong Kong in recent weeks to discuss the potential sale, said the people, who asked not to be identified as the information is private.

The move could help the supply chain firm manage its debt obligations, with an existing bond due later this year. The company has a bond with $313.3 million in principal outstanding due in August, which is currently trading around par. It also has a perpetual note with $650 million in principal outstanding trading around 48 cents.

Li & Fung didn’t immediately respond to a request for comment on the potential bond offering.

S&P Global Ratings affirmed Li & Fung’s "BB" long-term issuer credit rating in April and said that company’s cash balance is more than sufficient to cover the bond maturity in August and outstanding bank loans.

The ratings firm said that shifting supply chain conditions are likely to drive new orders, creating growth opportunities for Li & Fung.

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Li & Fung, which was founded more than a century ago, was a supply-chain behemoth. But it ran into headwinds as e-commerce platforms like Alibaba and Amazon cut out the middleman, and its Western retail clients suffered waves of store closures. The company was privatized in 2020.