By Megan Cheah
Tencent Holdings plans to raise approximately $4.66 billion through a combination of dollar and yuan-denominated notes, and aims to use the proceeds for refinancing and general corporate purposes.
The Chinese technology company has entered into subscription agreements to issue $2.45 billion in dollar notes and 15.0 billion yuan in yuan-denominated notes, equivalent to $2.21 billion, according to a filing on Wednesday.
The notes will be issued in two tranches for each currency, the company said.
Under its dollar senior notes plan, the company aims to raise $1.75 billion in its first tranche maturing in 2036 with a 5.0% coupon. The remaining $700 million will be covered in a second tranche due 2046, carrying a 5.6% coupon.
As for its yuan senior notes, Tencent seeks to raise 11.0 billion yuan in its first tranche due 2036, which will carry a 2.5% coupon. The remaining 4.0 billion yuan tranche will mature in 2056 and carry a 3.1% coupon.
The notes are scheduled to be issued on June 16. Tencent said it intends to use the net proceeds for general corporate purposes, including refinancing.
J.P. Morgan, HSBC, Morgan Stanley, Bank of China and Industrial and Commercial Bank of China (Asia) are among banks advising Tencent on its dollar and yuan note issuance.
Tencent's Hong Kong-listed shares closed 1.5% higher on Tuesday, though the stock remains down roughly 24% year-to-date.
Write to Megan Cheah at megan.cheah@wsj.com
(END) Dow Jones Newswires
06-09-26 2055ET
