Chinese technology giant Tencent Holdings has attracted investor orders exceeding $6 billion for its upcoming dual-currency bond offering, according to orderbook data obtained by Reuters on Tuesday.
Investor demand for the company’s offshore yuan bonds, including 10-year and 30-year options, surpassed 20.5 billion yuan (equivalent to $3.02 billion), the data revealed.
Additionally, orders for Tencent’s dollar-denominated bonds, featuring 10-year and 20-year terms, topped $3 billion based on separate orderbook information.
Preliminary pricing details showed the proposed 10-year dollar bond was set at U.S. Treasuries plus 80 basis points, while the 20-year dollar bond carried guidance of U.S. Treasuries plus 90 basis points, according to term sheet documentation obtained by Reuters.
For the yuan-denominated offerings, the 10-year offshore bond carried guidance around 2.95%, with the 30-year bond priced at approximately 3.55%, the term sheet indicated.
According to the documentation, Tencent intends to allocate the bond proceeds toward general corporate uses, including debt refinancing activities.
Sources familiar with the matter told Reuters on Monday that Tencent is targeting $4 billion in total fundraising through this bond issuance.
When contacted by Reuters via email on Tuesday, the company had not provided an immediate response for comment.
Tencent’s stock price gained 3.9% during early Tuesday trading sessions.
The company’s previous foray into international bond markets occurred in September, when it successfully raised 9 billion yuan through an offshore yuan bond. Prior to that, Tencent’s most recent dollar bond was a $4.15 billion offering completed in April 2021.
Exchange rate reference: $1 equals 6.7771 Chinese yuan renminbi
