Tencent Holdings is preparing to raise about $3 billion through a dual-currency bond offering that could be priced as early as Tuesday, Bloomberg reported, citing sources familiar with the matter.
Shares of Tencent jumped 4.17% in Hong Kong market.
The Chinese technology and gaming giant has obtained regulatory approval to issue up to $4.5 billion of offshore debt. However, the company is not expected to utilize the entire quota in the current transaction, according to people who participated in a roadshow presentation hosted by Tencent management on Monday.
If completed, the offering would mark Tencent’s first U.S. dollar-denominated bond sale since 2021 and only its second issuance of offshore yuan, or dim sum, bonds following its inaugural deal last year. Sources noted that the final size of the transaction has yet to be determined and could be adjusted depending on investor demand.
Tencent has mandated a group of investment banks to arrange the sale, which is expected to include 10-year and 20-year U.S. dollar bonds, as well as 10-year and 30-year offshore yuan-denominated notes, according to another person familiar with the matter.
The proceeds are expected to be used primarily for refinancing existing obligations and for general corporate purposes, the people said.
