Tencent plans dollar and offshore yuan bond sale
Chinese technology company Tencent announced on October 12 that it was considering issuing US dollar- and offshore yuan-denominated bonds under its global medium-term note programme.
According to documents reviewed by Reuters, the proposed dollar bonds could have maturities of 10 and 20 years, while the yuan bonds could mature in 10 and 30 years. The offering size has not been determined. Tencent raised $4.66 billion through a similar transaction in June.
The proposed issuance illustrates how major technology companies continue to seek long-term funding in bond markets. Using different currencies and maturities could broaden Tencent's investor base. However, the company said the transaction depends on market conditions and investor demand, and no binding agreement has been signed.
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