Market Chatter: Tencent Said to Plan $5 Billion Bond Sale to Fund AI Spending

MT Newswires Live17:16

Tencent Holdings (HKG:0700) plans to raise about $5 billion through a bond offering to fund AI-related capital expenditure, primarily chip purchases, Bloomberg News reported Monday, citing people familiar with the matter.

The offering comprises $1.5 billion to $2 billion in U.S. dollar notes and 20 billion yuan to 25 billion yuan in offshore yuan notes. Tencent could price the deal as early as Tuesday, the report said.

The company's capital expenditure on AI and computing rose 176% year over year to 52.8 billion yuan in the second quarter, resulting in a 13.8 billion yuan free-cash outflow, Bloomberg noted. Spending is expected to remain elevated through 2026 and into 2027, it added.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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