TENCENT Reportedly Plans USD and Offshore RMB Bond Issuance to Raise Approximately $30 Billion

It is understood that TENCENT (ASX: 00700) intends to issue US dollar and offshore renminbi bonds, with the aim of raising approximately $30 billion, according to a media report citing informed sources.

Pricing for this bond issuance could be finalized as early as Tuesday, June 9th.

Sources who participated in an online roadshow event on Monday, June 8th, cited company management as stating that Tencent has received regulatory approval for an offshore bond quota of up to $4.5 billion, but this upcoming issuance is unlikely to utilize the entire approved amount.

On the same day, Tencent updated its $30 billion global medium-term note program.

The company still has outstanding notes with a total principal amount of $17.51 billion under this program.

Tencent plans to issue notes to professional investors under this global medium-term note program within the next 12 months.

The company currently intends to use the net proceeds from each issuance, including the proposed notes, for general corporate purposes.

Tencent has appointed J.P. Morgan, BofA Securities, and Morgan Stanley as arrangers for the program.

It is reported that Tencent has engaged an investment banking team for this financing round.

The proposed US dollar bonds are expected to include 10-year and 20-year tranches, while the offshore renminbi bonds will include 10-year and 30-year tranches.

Informed sources indicate that the funds raised from this offshore bond issuance will primarily be used for general purposes, including refinancing.

Sources revealed that the final size of the bond offering has not yet been finalized and will be adjusted based on investor subscription feedback.

If this issuance proceeds, it would mark Tencent's first US dollar bond issuance since 2021 and its return to the offshore renminbi bond market following its initial foray into the dim sum bond market last year.

Company management stated during the roadshow that Tencent has $3.5 billion in debt, including loans, maturing this year, with $2.8 billion due next year.

The report mentioned that Tencent has no public offshore bonds maturing in 2026, but has a $2.5 billion note due in 2028.