Tencent raises $ 6 billion in Asia's largest corporate debt deal this year

HONG KONG (Reuters) – Chinese social media and gaming giant Tencent Holdings Ltd said on Thursday that it raised $ 6 billion from a sale of US dollar bonds – an Asian company's largest debt deal in 2020.

ARCHIVE PHOTO: A Tencent sign is seen during the China Digital Entertainment Expo and Conference (ChinaJoy) in Shanghai, China, August 3, 2018. REUTERS / Aly Song


The deal was finalized on Thursday when Tencent raised $ 1 billion in debt in five years, $ 2.25 billion in 10 years, $ 2 billion in 30 years and $ 750 million in 40-year debt. , showed a result sheet.

It was the first time that Tencent, Asia's second most valuable company by market capitalization, has raised 40-year debt in its history.

Investor demand reached $ 36 billion, according to two sources with direct knowledge of the subject.


The sources could not be named because the information was not yet public.

The Tencent securities deal was underway during the New York trading session, when U.S. Secretary of State Mike Pompeo said that Hong Kong no longer needed special treatment under U.S. law because of the growing Chinese influence in the city. .


"When I saw the headline appear while the Tencent book was still open, I thought to myself, 'Is this going to be useless? & # 39; I thought it could have been, but it ended up having no impact," he said. a banker, who declined to be identified and worked on the deal.

"I think the investor base around the world is taking a more balanced approach to these issues than headlines can make you think."

The final price for each of the tranches was tighter than initially expected, according to the terms sheets released while the deal was being concluded.

The transaction was the largest for a non-financial company in the Asian region so far this year, according to data compiled by Refinitiv.


Prior to the Tencent deal, the biggest one was a $ 4 billion unsolicited bond by Scenery Journey in January and a $ 2.9 billion bond by Chinese state oil company Sinopec on May 7, the data showed. .


About $ 712 billion was raised by companies in Asia-Pacific, not including Tencent's last deal in 2020, which is the strongest start to a year on record, according to data from Refinitiv.

Edited by Muralikumar Anantharaman and Jacqueline Wong


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