Tencent plans dollar, offshore yuan bond sale under note programme

Technology group Tencent said on Monday it intends to issue debt through its global medium-term note scheme, and it will share recent corporate and financial details with potential buyers. A term sheet reviewed by Reuters indicates the securities would be senior unsecured debt in both US dollars and offshore yuan. Business Recorder noted the company may sell 10-year and 20-year dollar bonds, plus 10-year and 30-year offshore yuan bonds, depending on market conditions.

No deal size has been set. JPMorgan, Goldman Sachs, HSBC and Morgan Stanley lead the dollar offering, while eight institutions including ICBC (Asia) and HSBC are arranging the yuan tranche, and investor calls are expected later in the day.

Tencent's previous bond sale came in June, when it raised $4.66 billion across four tranches in dollars and offshore yuan. The company said completion hinges on several factors, such as prevailing market conditions, its funding requirements and buyer appetite, and that no binding agreement has been reached.