China’s Tencent draws more than $6 billion in orders for dual-currency bond

SYDNEY, June 9 (Reuters) – China’s Tencent Holdings has drawn more than $6 billion in orders for its planned dual-currency bond, according to updated orderbook messages reviewed by Reuters on Tuesday.

Combined order books for the Chinese technology company’s 10-year and 30-year offshore yuan bonds exceeded 20.5 billion yuan ($3.02 billion), the messages showed.

Orders for Tencent’s 10-year and 20-year dollar bonds exceeded $3 billion, a separate orderbook update showed.

Initial price guidance for the proposed 10-year dollar bond was U.S. Treasuries plus 80 basis points while the 20-year dollar bond was U.S. Treasuries plus 90 basis points, according to an earlier term sheet reviewed by Reuters.

The 10-year offshore yuan bond guidance was set at about 2.95% and the 30-year offshore yuan bond at 3.55%, according to the term sheet. 

Tencent plans to use the proceeds for general corporate purposes, including refinancing, the term sheets showed.

Tencent is aiming to raise $4 billion in the deal, Reuters reported on Monday citing sources.

The company did not immediately respond to a Reuters emailed request for comment on Tuesday.

Shares of Tencent climbed 3.9% in early Tuesday trade.

Tencent last tapped global bond markets in September, when it raised 9 billion yuan from an offshore yuan bond. Its last dollar bond was a $4.15 billion issue in April 2021.

($1 = 6.7771 Chinese yuan renminbi)

(Reporting by Scott Murdoch in Sydney and Yantoultra Ngui in Singapore; Editing by Tom Hogue and Kate Mayberry)