Date
19 October 2019
Tencent has tapped the US dollar debt market in the biggest Asian deal this year. Photo: Reuters
Tencent has tapped the US dollar debt market in the biggest Asian deal this year. Photo: Reuters

Tencent closes US$6 bln bond sale, Asia’s largest this year

Chinese social media and gaming giant Tencent Holdings has raised US$6 billion in a bond sale, with proceeds earmarked for refinancing and general corporate purposes, Reuters reports.

The sale was Asia’s largest this year, surpassing property developer China Evergrande Group’s US$2.8 billion issue in January, according to the report.

Tencent sold US$2 billion in fixed and floating rate five-year notes, US$500 million in seven-year notes, US$3 billion in 10-year notes and US$500 million in 30-year notes.

The bonds will carry coupons of 3.280 percent, 3.575 percent, 3.975 percent and 4.525 percent on the fixed rate five-year notes, seven-year notes, 10-year notes and 30-year notes, respectively, the report said, citing a filing to the Hong Kong Stock Exchange.

The floating rate five-year note will have an interest rate of LIBOR plus 0.910 percent.

Tencent said earlier this week that its board had doubled its Global Medium Term Note Programme limit to US$20 billion from US$10 billion, with proceeds going towards general corporate purposes.

The tech giant had a US$6 billion offshore issuance quota from China’s state planner, the National Development and Reform Commission (NDRC), sources told Reuters on Tuesday.

The financing plans came after Tencent had a rough 2018 in the wake of a crackdown by China’s regulators on the online gaming industry, which prevented the firm from capitalizing on some of its most popular titles.

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