Jack Dorsey's financial technology company, Block (formerly known as Square), announced on May 6th that it plans to issue $1.5 billion in preferred notes to qualified institutional investors through private placement.

Block stated that the terms of the notes (including interest rates and maturity dates) will be negotiated with the initial purchasers. Investors approved to participate in this round of financing include pension funds, banks, mutual funds, and high net worth individuals.

Fitch Ratings pointed out that since its IPO, Block has consistently used convertible bonds as external financing and is in a favorable position to seize long-term growth opportunities in the payment and consumer finance services sector. (Cointelegraph)