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China's Tencent raises US$6b in bond sale; proceeds for general purposes
[HONG KONG] Chinese social media and gaming giant Tencent Holdings Ltd said on Thursday it has raised US$6 billion in a bond sale, with proceeds earmarked for refinancing and general corporate purposes.
The sale was Asia's largest this year, Refinitiv data showed, exceeding property developer China Evergrande Group's US$2.8 billion issue in January.
Tencent sold US$2 billion in fixed and floating rate five-year notes, US$500 million in seven-year notes, US$3 billion in 10-year notes and US$500 million in 30-year notes, it said in a filing to Hong Kong's stock exchange.
The bonds will carry coupons of 3.280 per cent, 3.575 per cent, 3.975 per cent and 4.525 per cent on the fixed rate five-year notes, seven-year notes, 10-year notes and 30-year notes, respectively.
The floating rate five-year note will have an interest rate of Libor plus 0.910 per cent.
The tech firm earlier this week said its board had increased its Global Medium Term Note Programme limit to US$20 billion from US$10 billion, with proceeds going towards general corporate purposes.
Tencent had a US$6 billion offshore issuance quota from China's state planner, the National Development and Reform Commission (NDRC), two people with knowledge of the deal said on Tuesday.
Deutsche Bank, HSBC, Goldman Sachs and Morgan Stanley were joint global coordinators for the sale, Tencent said in an earlier filing.
Tencent suffered a rough 2018, as China's gaming regulator's nine-month hiatus in approving games for monetisation prevented the firm from capitalising on some of its most popular titles.
Net profit for the last quarter of 2018 fell the most since the firm went public in 2004, by 32 per cent, in part due to one-off losses at portfolio companies.