Tencent raises US$6 billion in largest Asian corporate debt deal
Published : Thursday, 28 May, 2020 at 11:07 PM Count : 229
Chinese social media and gaming giant Tencent Holdings Ltd said on Thursday it raised US$6 billion in a U.S. dollar bond sale: the largest debt deal by an Asian corporate in 2020.
The deal was finalized early Thursday, with Tencent raising US$1 billion in five-year debt, US$2.22 billion in 10 years, US$2 billion in 30 years and $ 6.50 million in 40-year debt.
This is the first time that Tencent, Asia's second-largest company by market capitalization, has accumulated 40 years of debt in its history.
Demand from investors has reached US$36 billion, according to two sources with direct knowledge of the subject.
The source could not be named because the information was not public.
Tencent’s bond deal was in progress during a trade session in New York when U.S. Secretary of State Mike Pompeo also said Hong Kong does not offer special treatment under U.S. law because of its growing Chinese influence in the city.
"When I saw that the title came up while Tencent was still opening the book, I thought to myself, 'Is this going to be helpless?' I thought it might be, but it turned out to have no effect,” said one banker, who refused to be identified and worked on the contract.
"I think investors around the world have a more balanced view of these issues, but the headlines can make you think."
The final pricing for each branch was strictly inherently anticipated, as was the term sheet at the time the contract was terminated.
According to the data compiled by Refinitive, the transaction was the largest by a financial institution in the Asian region this year.
Prior to the Tencent deal, the biggest was a US$4 billion junk bond from Scenario Journey in January and a ৯ 2.9 billion bond from Chinese state oil company Sinopec on May 7, data released.
According to refinance data, Asia Pacific corporations raised about $ 11 billion in 2020, including Tencent's latest deal, the strongest start in a year on record.-Internet