Tencent (0700) has hired banks for a benchmark US dollar and offshore yuan bond sale, term sheets showed on Monday, in what would be the Chinese technology company’s first dollar bond offering since 2021.
A deal could follow as early as Tuesday, subject to market conditions, the term sheets showed.
The term sheets did not give a size for the deal, but two sources with direct knowledge of the matter said Tencent aims to raise about US$4 billion (HK$31.35 billion) across both currencies.
Tencent declined to comment.
Tencent is looking to sell 10- and 20-year dollar notes, alongside 10- and 30-year offshore yuan notes. Offshore yuan, also known as CNH, refers to yuan that is traded outside mainland China.
The notes are expected to be rated A1 by Moody’s, A+ by S&P and A by Fitch, the term sheets showed.
Tencent last tapped the dollar bond market in April 2021, when it raised US$4.15 billion.
The planned notes would be issued under Tencent’s previously announced US$30 billion global medium-term note programme, according to a Hong Kong exchange filing. The filing said the company intends to use the net proceeds from each issue of notes, including the proposed notes, for general corporate purposes.
JPMorgan, HSBC (0005) and Morgan Stanley are the joint global coordinators for the proposed dollar notes, while Bank of China (3988), CITIC Securities (6030), HSBC, ICBC Asia and JPMorgan are joint global coordinators for the offshore yuan notes, the term sheets showed.
Reuters
