Nominal 
Economic Information Agency (14th) reported that Tencent Holdings (00700) announced on October 13 (New York time) it has entered into subscription agreements for the issuance of notes with an aggregate principal amount of $1.8 billion and RMB 26 billion. The notes are expected to be issued on October 21 (New York time) and are intended to be listed on the Hong Kong Stock Exchange. This bond issuance is one of the largest offshore bond offerings by Chinese enterprises this year, and the RMB 26 billion dim sum bond issuance sets a new market record.
The above-mentioned U.S. dollar notes are divided into two tranches: one tranche with a principal amount of $1.3 billion maturing in October 2036, carrying an annual interest rate of 6.1%, and offered at 99.859% of the aggregate principal amount; the other tranche with a principal amount of $500 million maturing in October 2046, carrying an annual interest rate of 6.75%, and offered at 99.88% of the aggregate principal amount.
The RMB notes are also divided into two tranches: one tranche with a principal amount of RMB 20 billion maturing in October 2036, carrying an annual interest rate of 2.4%; and another tranche with a principal amount of RMB 6 billion maturing in October 2056, carrying an annual interest rate of 3%. The offering price for both RMB note tranches is 100% of the aggregate principal amount.
After deducting underwriting fees, discounts, and commissions, the estimated net proceeds from the issuance of the U.S. dollar notes and RMB notes are approximately $1.79 billion and RMB 25.89 billion, respectively. The company intends to use the net proceeds for general corporate purposes.
Tencent only completed a $4.7 billion bond issuance in June this year, and this issuance will be Tencent's largest offshore bond offering since 2020. As global tech companies advance funding for AI projects, bond financing activities are surging. However, investors remain confident in Tencent. It was reported that this issuance attracted a total subscription of over $23 billion from investors, four times the final issuance size. (eh)
The above-mentioned U.S. dollar notes are divided into two tranches: one tranche with a principal amount of $1.3 billion maturing in October 2036, carrying an annual interest rate of 6.1%, and offered at 99.859% of the aggregate principal amount; the other tranche with a principal amount of $500 million maturing in October 2046, carrying an annual interest rate of 6.75%, and offered at 99.88% of the aggregate principal amount.
The RMB notes are also divided into two tranches: one tranche with a principal amount of RMB 20 billion maturing in October 2036, carrying an annual interest rate of 2.4%; and another tranche with a principal amount of RMB 6 billion maturing in October 2056, carrying an annual interest rate of 3%. The offering price for both RMB note tranches is 100% of the aggregate principal amount.
After deducting underwriting fees, discounts, and commissions, the estimated net proceeds from the issuance of the U.S. dollar notes and RMB notes are approximately $1.79 billion and RMB 25.89 billion, respectively. The company intends to use the net proceeds for general corporate purposes.
Tencent only completed a $4.7 billion bond issuance in June this year, and this issuance will be Tencent's largest offshore bond offering since 2020. As global tech companies advance funding for AI projects, bond financing activities are surging. However, investors remain confident in Tencent. It was reported that this issuance attracted a total subscription of over $23 billion from investors, four times the final issuance size. (eh)
