Tencent Holdings (HKG:0700) is selling bonds for the second time in about four months, pricing $1.8 billion of dollar notes and 26 billion yuan of offshore yuan notes under its global medium-term note program, according to a Hong Kong bourse filing on Wednesday.
The offering marks Tencent's third bond sale in about 13 months after pricing a 9 billion yuan bond sale in September 2025. That sale was Tencent's first in four years, according to Bloomberg. In June, it sold 15 billion yuan of renminbi-denominated notes and $2.45 billion of dollar-denominated notes.
Under the latest offering, the Chinese tech company will sell $1.3 billion of 6.10% notes due Oct. 21, 2036, offered at 99.859% of principal, and $500 million of 6.75% notes due Oct. 21, 2046, offered at 99.880%.
The yuan offering comprises 20 billion yuan of 2.40% notes due Oct. 21, 2036, and 6 billion yuan of 3.00% notes due Oct. 21, 2056, both offered at par value.
Net proceeds, after underwriting fees, discounts and commissions, will total about $1.79 billion and 25.89 billion yuan.
While Tencent indicated that it will use the money for general corporate purposes, Bloomberg reported Monday, citing people familiar with the matter, that the company told fixed-income investors that the proceeds will help finance AI-related capital expenditure. Most of that spending will go to chip purchases, according to the report.
The notes are expected to be issued Oct. 21, New York time, and the company plans to list them in Hong Kong.
ICBC (Asia), Agricultural Bank of China, Bank of China, Bank of Communications, China Construction Bank, CITIC Securities, HSBC and JP Morgan are the joint global coordinators for the yuan offering, while JP Morgan, Goldman Sachs, HSBC and Morgan Stanley will handle the dollar bond sale.
Tencent has about $22 billion of offshore bonds outstanding, with no bonds maturing in 2026, Bloomberg said in a separate report on Tuesday. The company has about $2.5 billion in dollar bonds due in 2028, the report added.
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