Key facts
- Tencent plans to raise at least $4.5 billion through dollar and dim sum bond sales.
- The bond sale includes 10-year and 20-year US dollar notes, and 10-year and 30-year offshore yuan notes.
- Tencent's capital expenditure more than doubled to 96.3 billion yuan in the first half of 2026.
- The company plans to use the proceeds for general corporate purposes.
- The bonds are expected to be rated A1 by Moody's and A+ by S&P.
Tencent Holdings is preparing to issue US dollar and offshore Chinese yuan bonds, aiming to raise at least $4.5 billion to fund its increasing investments in artificial intelligence.
The planned sale includes 10-year and 20-year US dollar notes, with initial guidance set at approximately 115 basis points over comparable US Treasury bonds for the 10-year notes and 140 basis points for the 20-year notes. The order books for the dollar offering had already surpassed $2 billion.
Additionally, the company is offering 10-year and 30-year offshore yuan notes, with initial yield guidance around 2.90% and 3.50% respectively. Orders for these yuan notes exceeded 35 billion yuan ($5.2 billion).
This borrowing comes as Tencent significantly ramps up its spending on AI, with capital expenditure more than doubling to 96.3 billion yuan in the first half of 2026 compared to the previous year. This spending covers computing equipment, software, and data centers.
Tencent last accessed the bond market in June, raising approximately $4.66 billion. The proceeds from the current issuance are intended for general corporate purposes. The bonds are anticipated to receive ratings of A1 from Moody's and A+ from S&P.