Tencent's Dual Tranche Bond Subscription Orders Exceed $6 Billion, Marking Its Return to the US Dollar Bond Market After Five Years

According to Data Intelligence, Beating monitoring, Tencent Holdings' issuance of offshore Renminbi and US Dollar dual-currency bonds has attracted enthusiastic subscriptions. Based on the latest bookbuilding data cited by Reuters, the total subscription orders for its dual-currency bonds have exceeded $6 billion. Among them, the combined orders for the 10-year and 30-year offshore Renminbi bonds (Dim Sum bonds) have exceeded 20.5 billion RMB (approximately $3.02 billion); and the subscription intentions for the 10-year and 20-year US Dollar bonds have also surpassed $3 billion.

Regarding the pricing guidance range, Tencent's initial price guidance for the 10-year US Dollar bond is US Treasuries plus 80 basis points, and for the 20-year US Dollar bond, it is US Treasuries plus 90 basis points; for the offshore Renminbi bonds, the 10-year yield guidance is around 2.95%, and the 30-year yield is around 3.55%. The proceeds from this issuance will be used for general corporate purposes and refinancing.

This marks Tencent's return to the US Dollar bond market for the first time in five years since issuing a $4.15 billion bond in April 2021. Despite Bloomberg's report yesterday that Tencent initially aimed to raise $3 billion (while Reuters sources stated a $4 billion target), the surging investor demand has raised the order size. Tencent has now received regulatory approval to issue up to $4.5 billion in offshore debt.