Tencent raises $6 billion via bond


China’s largest Internet company, Tencent Holdings Ltd., said it has raised a total sum of $6 billion via a bond sale that will see the technology company finance special projects.

The company said the raising is part of its US$20 billion Global Medium Term Note Programme.

The pricing of the US$6 billion notes includes a US$750 million notes at an annual floating rate of 0.910% over 3-month USD LIBOR and US$1.25 billion notes at an annual fixed rate of 3.280%, both of which will mature after 5 years on 11 April 2024; US$500 million notes which will mature after 7 years on 11 April 2026 at an annual fixed rate of 3.575%; US$3 billion notes which will mature after 10 years on 11 April 2029 at an annual fixed rate of 3.975%; and US$500 million notes which will mature after 30 years on 11 April 2049 at an annual fixed rate of 4.525%. After issuance of the US$6 billion notes on 11 April 2019, the Company will have utilised approximately US$15.513 billion in aggregate principal amount of notes outstanding under the Programme.

The notes will be listed on The Stock Exchange of Hong Kong Limited. None of the notes will be offered to the public in Hong Kong, the United States, or any other jurisdictions, nor will the notes be placed to any connected person(s) of the Company. The estimated net proceeds of the notes offering, after deduction of underwriting fees, discounts and commissions but not other expenses payable in connection with the notes offering, will amount to approximately US$5.98 billion.

The Company intends to use the net proceeds from the notes offering for refinancing and general corporate purposes. Mr. Martin Lau, President of Tencent, said, “We are pleased with the encouraging response to the notes, which illustrates investors’ recognition of our solid credit profile, supported by our highly cash generative business model and increasingly diversified revenue streams.”

Mr. John Lo, Chief Financial Officer of Tencent, added, “We have a strong balance sheet with significant cash position and a rich pool of listed securities. Going forward, we will continue to exercise discipline in our financial management and focus on maintaining the right balance between capital expenditure, investments and returns.”