Tencent Holdings will raise $5.7 billion through the issuance of both yuan-denominated and US dollar-denominated bonds, with the proceeds earmarked to support its growing investments in the artificial intelligence sector.

On October 13, reports indicated that Tencent Holdings had completed pricing for 26 billion yuan ($3.88 billion) in offshore bonds and had launched an $1.8 billion US dollar bond offering.

The issuance attracted total investor subscriptions exceeding $23 billion, more than four times the final issuance size, demonstrating strong market recognition of Tencent's credit quality. Reports noted that Tencent initially expected to raise at least $4.5 billion, with the final size exceeding expectations.

This issuance marks Tencent's largest offshore bond offering since 2020. The company had just completed a $4.7 billion bond issuance in June of this year. As global technology companies seek funding for AI-related projects, bond financing is surging, and Tencent's offering is one such example.

Issuance Structure and Pricing

According to updated term sheets, Tencent issued $1.3 billion in 10-year bonds and $500 million in 20-year bonds in the US dollar market; in the offshore yuan (dim sum bond) segment, it issued 20 billion yuan in 10-year bonds and 6 billion yuan in 30-year bonds.

In terms of pricing, the 10-year US dollar bond spread was set at 90 basis points above the US Treasury benchmark, while the 20-year was set at 115 basis points, both narrowed by 25 basis points from the initial guidance. For the yuan bonds, the 10-year coupon was set at 2.40% and the 30-year at 3.00%, both reduced by 50 basis points from the initial guidance yield.

Subscription orders for the US dollar bonds exceeded $7.4 billion, while the order book for the dim sum bonds surpassed 105 billion yuan. The bonds are expected to receive A1 ratings from Moody's and A+ ratings from S&P, consistent with Tencent's existing issuer ratings.

JPMorgan, Goldman Sachs, HSBC, and Morgan Stanley served as global coordinators for the US dollar bonds, while ICBC (Asia), Agricultural Bank of China, Bank of China, Bank of Communications, China Construction Bank, CITIC Securities, HSBC, and JPMorgan coordinated the offshore yuan bond issuance.

According to the issuance documents, Tencent's capital expenditure in the first half of 2026 more than doubled year-on-year, rising from 45.9 billion yuan in the same period last year to 96.3 billion yuan, with spending covering computing equipment, software, and data centers.