China’s Tencent (0700) has drawn more than US$6 billion (HK$47 billion) in orders for its planned dual-currency bond, according to updated orderbook messages reviewed by Reuters on Tuesday.
Combined order books for the Chinese technology company’s 10-year and 30-year offshore yuan bonds exceeded 20.5 billion yuan (HK$23.7 billion), the messages showed.
Orders for Tencent’s 10-year and 20-year dollar bonds exceeded US$3 billion, a separate orderbook update showed.
Initial price guidance for the proposed 10-year dollar bond was US Treasuries plus 80 basis points while the 20-year dollar bond was US Treasuries plus 90 basis points, according to an earlier term sheet reviewed by Reuters.
The 10-year offshore yuan bond guidance was set at about 2.95 percent and the 30-year offshore yuan bond at 3.55 percent, according to the term sheet.
Tencent plans to use the proceeds for general corporate purposes, including refinancing, the term sheets showed.
Tencent is aiming to raise US$4 billion in the deal, Reuters reported on Monday citing sources.
The company did not immediately respond to a Reuters emailed request for comment on Tuesday.
Shares of Tencent climbed 3.9 percent in early Tuesday trade.
Tencent last tapped global bond markets in September, when it raised 9 billion yuan from an offshore yuan bond. Its last dollar bond was a US$4.15 billion issue in April 2021.
Reuters
