Tencent plans dollar and offshore yuan bond sale under note programme
Tencent announced plans to issue senior unsecured notes in US dollars and offshore Chinese yuan under its global medium-term note programme. Banks including JPMorgan, Goldman Sachs, HSBC and Morgan Stanley are leading the offering, with a potential investor call scheduled.
Technology giant Tencent (0700) said on Monday it proposes to issue notes under its global medium-term note programme and will provide potential investors with recent corporate and financial information related to the offering, according to a term sheet seen by Reuters.
The proposed offering comprises senior unsecured notes denominated in US dollars and offshore Chinese yuan, according to the term sheet. Tencent may sell 10-year and 20-year US dollar bonds, as well as 10-year and 30-year offshore yuan bonds, subject to market conditions. The company has not set a deal size.
JPMorgan, Goldman Sachs, HSBC and Morgan Stanley are leading the dollar offering. ICBC (Asia), Agricultural Bank of China, Bank of China, Bank of Communications, China Construction Bank, CITIC Securities, HSBC and JPMorgan are leading the yuan tranche, the term sheet showed. Banks are expected to arrange investor calls later in the day ahead of the potential offering.
Tencent last tapped bond markets in June, raising US$4.66 billion (HK$36.35 billion) from a four-part offering of US dollar and offshore yuan notes. The Shenzhen-headquartered company's latest fundraising comes as technology companies globally continue to issue debt to take advantage of access to funding markets.
Tencent said completion of the note issue depends on several factors, including market conditions, corporate funding needs and investor demand, and that no binding agreement has been entered into. The company did not immediately respond to a Reuters request for comment.