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    China’s Tencent aims to raise $1 billion equivalent in dim sum bonds, sources say – Reuters

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    By Scott Murdoch

    Copyright reuters

    China's Tencent aims to raise $1 billion equivalent in dim sum bonds, sources say - Reuters

    SYDNEY, Sept 16 (Reuters) – Chinese gaming and social media leader Tencent Holdings (0700.HK), opens new tab is aiming to raise the equivalent of $1 billion in a three-tranche offshore yuan bond deal, according to two sources with direct knowledge of the matter.

    The sources could not be identified as the information has had not yet been made public. Tencent declined to comment on the transaction.

    Tencent plans to issue five-, 10- and 30-year offshore yuan bonds, according to a term sheet seen by Reuters on Tuesday.

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    The dim sum bonds have initial price guidance of about 2.6% for the 5-year tranche, 3% for the 10-year and 3.6% for the 30-year, the term sheet showed.

    The sale is for investors based outside of the U.S.

    Tencent has like its internet giant peers been spending big on AI, though capital expenditure has moderated recently. After spending 36.6 billion yuan ($5.14 billion) in the fourth quarter of 2024 and 27.5 billion yuan in the first quarter, its capex fell to 19.1 billion yuan in the second quarter.

    In August, the company told analysts that it planned to take a more measured approach going forward, with a view towards sustainable monetization from its AI initiatives and to “spend smartly”.

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    Alibaba, a key rival, recently raised $3.2 billion via the sale of a zero-coupon convertible bond which it said it wanted to use to fund international expansion and strengthen cloud computing.

    The e-commerce giant said it planned to use nearly 80% of the proceeds to expand data centres, upgrade technology and improve services to meet demand for cloud solutions.

    ($1 = 7.1148 Chinese yuan renminbi)

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    Reporting by Scott Murdoch; additional reporting by Brenda Goh; Editing by Tom Hogue, Christopher Cushing and Kim Coghill

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    Scott MurdochThomson ReutersScott Murdoch has been a journalist for more than two decades working for Thomson Reuters and News Corp in Australia. He has specialised in financial journalism for most of his career and covers the Australian financial services sector and superannuation. He is based in Sydney.

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