Tencent to issue US$2.45b and 15b yuan notes

Tencent (0700) said on Wednesday that it plans to issue US$2.45 billion (HK$19.2 billion) and 15 billion yuan (HK$17.3 billion) notes on June 16, respectively, and the net proceeds will be used for general corporate purposes, including refinancing.

The tech giant will offer 10-year and 20-year US dollar bonds amounting to US$1.75 billion and US$700 million, respectively, with interest rates of 5 percent and 5.6 percent per annum.

The expected 10-year and 30-year yuan bonds totaled at 11 billion and 4 billion yuan, offering interest rates of 2.5 percent and 3.1 percent per annum.

After deducting underwriting fees, discounts, and commissions, the estimated net proceeds from the dual-currency deals will be about US$2.43 billion and 14.94 billion yuan, respectively.

Tencent noted that the notes are expected to be listed on the Hong Kong Stock Exchange.

Upon completion, the company will have an aggregate principal amount of approximately US$22.18 billion outstanding notes under its global medium-term note programme.

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