Tencent raises about $5.7 billion in dollar and yuan bond sale

Tencent raised about $5.7 billion in a four-part sale of US-dollar and offshore-yuan bonds, completing financing proposed a day earlier. Reporting based on updated term sheets for Tencent’s completed bond sale put combined investor orders above $23 billion, more than four times the final offering size.

The reported sale comprised $1.3 billion of 10-year dollar notes and $500 million of 20-year dollar notes, alongside CNY20 billion of 10-year offshore-yuan notes and CNY6 billion of 30-year offshore-yuan notes.

Pricing tightened from initial guidance across all four tranches. The 10-year dollar notes priced at 90 basis points over comparable US Treasuries and the 20-year notes at 115 basis points over Treasuries, each 25 basis points tighter than initial guidance. The 10-year yuan notes priced to yield 2.40%, while the 30-year notes priced at 3.00%, both 50 basis points below initial guidance.

Orders for the dollar notes exceeded $7.4 billion, including $1.576 billion of interest from joint lead managers. Orders for the offshore-yuan notes exceeded CNY105 billion, according to the reported term sheets.

The completion follows Tencent’s October 12 proposed notes offering. The term sheets designated the proceeds for general corporate purposes. Tencent’s October 12 offering announcement said the company planned to continue investing in AI infrastructure and AI applications for its products and services, but it did not earmark the bond proceeds specifically for AI.

The offering document showed Tencent’s capital expenditure rose to CNY96.3 billion in the first half of 2026 from CNY45.9 billion a year earlier. Tencent’s definition covered IT infrastructure, software, data centres, land-use rights, offices and intellectual property excluding media content.