Tencent Prices $2.45 Billion and RMB 15 Billion in Notes Under Global Program

On Wednesday, June 10th, TENCENT (00700.HK) announced the pricing of $2.45 billion and RMB 15 billion in notes under its global medium-term note program.

After deducting underwriting fees, discounts, and commissions, the estimated net proceeds from the issuance of the US dollar notes and the Renminbi notes will be approximately $2.43 billion and RMB 14.94 billion, respectively. The company intends to use the funds for general corporate purposes, which includes refinancing.

The details of the issuance are as follows. The principal amounts for the 10-year and 20-year US dollar notes are $1.75 billion and $700 million, respectively, with coupon rates of 5.0% and 5.6%. Their issue prices are 99.689% and 99.571% of the principal amount, respectively.

The principal amounts for the 10-year and 30-year Renminbi notes are RMB 11 billion and RMB 4 billion, respectively, with coupon rates of 2.5% and 3.1%. Their issue prices are 100% of the principal amount.

Following the issuance of the notes on June 16, the total principal amount of outstanding notes under the program for Tencent will be approximately $22.18 billion.

The joint global coordinators for the US dollar notes are J.P. Morgan, HSBC, and Morgan Stanley.

The joint bookrunners for the US dollar notes are J.P. Morgan, HSBC, Morgan Stanley, Bank of China, Barclays, BofA Securities, Bank of Communications, China Construction Bank, Goldman Sachs (Asia) LLC, Industrial and Commercial Bank of China (Asia), and Mitsubishi UFJ Securities.

The joint global coordinators for the Renminbi notes are Bank of China, CITIC Securities, HSBC, Industrial and Commercial Bank of China (Asia), and J.P. Morgan.

The joint bookrunners for the Renminbi notes are Bank of China, CITIC Securities, HSBC, Industrial and Commercial Bank of China (Asia), J.P. Morgan, Agricultural Bank of China, Bank of Communications, China Construction Bank, and Standard Chartered.