Tencent's dual-currency bond subscription order exceeds $6 billion, marking its first return to the U.S. dollar bond market in five years

According to Beating monitoring, Tencent Holdings’ offshore renminbi and U.S. dollar dual-currency bonds attracted strong subscriptions. According to Reuters, citing the latest book data, the total subscription orders for these dual-currency bonds have already exceeded $6 billion. Of this, the combined orders for the 10-year and 30-year offshore renminbi bonds (Dim Sum bonds) exceeded 20.5 billion yuan (about $3.02 billion); subscription intentions for the 10-year and 20-year U.S. dollar bonds have also exceeded $3 billion.

In terms of the pricing guidance range, Tencent’s initial price guidance for its 10-year U.S. dollar bonds is U.S. Treasuries plus 80 basis points, and for its 20-year U.S. dollar bonds is U.S. Treasuries plus 90 basis points. For offshore renminbi bonds, the yield guidance is approximately 2.95% for the 10-year tenor and approximately 3.55% for the 30-year tenor. The funds raised in this offering will be used for general corporate purposes and refinancing.

This marks Tencent’s first return to the U.S. dollar bond market in five years since it issued $4.15 billion in bonds in April 2021. Although Bloomberg reported yesterday that Tencent initially planned to raise $3 billion (Reuters sources said the target was $4 billion), investor demand drove order size higher. Tencent has now obtained approval from the relevant regulators and is able to issue up to $4.5 billion in offshore debt.