By Scott Murdoch and Yantoultra Ngui
SYDNEY/SINGAPORE, June 9 (Reuters) – China’s Tencent Holdings raised $4.66 billion in a dual-currency bond deal on Tuesday, term sheets reviewed by Reuters showed, as strong demand helped the Chinese technology company tighten pricing across all four tranches.
The tranches drew more than $17 billion in orders, earlier order book messages reviewed by Reuters showed. Reuters reported on Monday, citing sources, that Tencent aimed to raise $4 billion in the deal.
The strong response reflects both the global rush towards technology that has driven AI-linked stocks to record highs and the appetite for Tencent’s dollar bonds, which the tech giant last issued more than five years ago.
Tencent raised $2.45 billion from 10-year and 20-year dollar bonds, the term sheets showed. It sold $1.75 billion of 10-year notes at U.S. Treasuries plus 50 basis points and $700 million of 20-year notes at U.S. Treasuries plus 60 bps.
It also raised 15 billion yuan ($2.21 billion) from 10-year and 30-year offshore yuan notes, separate term sheets showed. It sold 11 billion yuan of 10-year notes with a 2.50% coupon and 4 billion yuan of 30-year notes with a 3.10% coupon.
The company did not respond to a Reuters request for comment on Tuesday.
Tencent shares ended 1.5% higher on Tuesday.
The final dollar spreads tightened from initial guidance of U.S. Treasuries plus 80 bps for the 10-year bond and U.S. Treasuries plus 90 bps for the 20-year bond.
The final offshore yuan coupons tightened from initial guidance of about 2.95% for the 10-year bond and 3.55% for the 30-year bond.
Tencent plans to use the proceeds for general corporate purposes, including refinancing, the term sheets showed.
The company last turned to global bond markets for funds in September, when it raised 9 billion yuan from an offshore yuan bond. Before that, its last dollar bond was a $4.15 billion issue in April 2021.
($1 = 6.7722 Chinese yuan renminbi)
(Reporting by Scott Murdoch in Sydney and Yantoultra Ngui in Singapore; Editing by Tom Hogue, Kate Mayberry, Barbara Lewis and Tomasz Janowski)
