Tencent markets US dollar and dim sum bonds in four tranches
Chinese technology giant Tencent is marketing US dollar bonds due in 10 and 20 years and offshore yuan bonds due in 10 and 30 years, according to term sheets. Initial yield guidance for the dollar notes is set at about 115 to 140 basis points over comparable US Treasuries.
Chinese technology giant Tencent (0700) is marketing US dollar bonds due in 10 and 20 years and offshore Chinese yuan, or dim sum bonds, due in 10 and 30 years, according to term sheets, as the company seeks funding in two currencies.
Tencent set initial guidance for the 10-year dollar notes at about 115 basis points over comparable US Treasury bonds and for the 20-year notes at about 140 basis points over Treasuries, the sheets showed.
For the offshore yuan notes, the company set initial yield guidance at around 2.9 per cent for the 10-year bonds and 3.5 per cent for the 30-year bonds, according to the term sheets.
The four-tranche fundraising plan comes as Tencent, one of China's largest technology companies, diversifies its funding sources across both US dollar and offshore yuan markets.