Tencent raises $4.15 billion in second major bond deal in a year



© Reuters. FILE PHOTO: A Tencent logo is seen at its booth at the 2020 China International Fair for Trade in Services (CIFTIS) in Beijing

By Scott Murdoch

HONG KONG (Reuters) – Chinese internet and social media giant Tencent Holdings Ltd (HK:) on Friday said it has raised $4.15 billion in its second major bond deal in less than a year.

The company in a statement said it raised $500 million in a 10 year tranche, $900 million in 20 year debt, $1.75 billion in 30 year and $1 billion in 40 year debt.

Pricing was set at 25 basis points to 35 basis points inside the initial price guidance delivered to potential investors when the deal was launched on Thursday.

The 10 year tranche was priced at 130 basis points and the 20 was set at 150 basis points above U.S. Treasuries.

Pricing for the 30-year tranche was 155 basis points and the 40-year was 165 basis points above the benchmark lending rate for those bonds.

Tencent had approval from the National Development and Reform Commission (NDRC) to raise up to $4.15 billion, meaning the final deal size was set in line with its quota.

The company raised $6 billion in May last year, when it also issued 40-year debt for the first time.

Tencent said it intends to use proceeds from the capital raising for general corporate purposes.

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