Tencent's first return to the dollar bond market in five years is already a blockbuster: orders for its dual-currency bond offering have blown past $60 billion, according to Reuters' latest book data. The haul includes over 205 billion yuan (about $30.2 billion) in combined orders for 10-year and 30-year dim sum bonds (offshore renminbi debt), plus more than $30 billion in orders for 10-year and 20-year USD bonds.
On pricing, Tencent's 10-year dollar bond is guiding at Treasuries plus 80 basis points, while the 20-year is at plus 90 bps. For the offshore RMB tranches, the 10-year yield is around 2.95% and the 30-year around 3.55%. Proceeds will go toward general corporate purposes and refinancing.
This is Tencent's first dollar bond sale since it raised $4.15 billion back in April 2021. While Bloomberg reported that Tencent initially aimed to raise $3 billion (Reuters sources say $4 billion), overwhelming investor demand pushed the order book much higher. The company has regulatory approval to issue up to $4.5 billion in offshore debt.