Tencent raises $ 6 billion during the biggest bond sale in Asia dollars this year

HONG KONG – Chinese Internet giant Tencent said Thursday it raised $ 6 billion in the biggest bond sale in Asia this year.

The social media and video gaming giant confirmed the price on Thursday in a paper filed on the Hong Kong Stock Exchange, with the largest tranche of $ 3 billion over 10 years at 3.975%.

Tencent also sold a five-year, $ 2 billion fixed and floating rate tranche, $ 500 million in seven-year bonds and $ 500 million in 30-year bonds.

According to data compiled by Bloomberg News, the dollar bond offering represents the biggest sell in Asia, excluding Japan, so far this year, when sources have announced that this offer would raise approximately $ 5 billion earlier this week.

"The market strongly anticipates Tencent's gigantic bid given the widespread lack of high-quality bonds denominated in Chinese dollars this year in the offshore market and the deluge of high-yield bonds from real estate developers. "said Owen Gallimore, head of ANZ's credit strategy in Singapore.

"Despite the low earnings from rising costs and gambling, Tencent is viewed by global fund managers as a strong (investment grade) benchmark."

The issuance of the tickets is expected to take place on April 11th. The program will represent a principal amount of $ 15.5 billion.

Shenzhen-based Tencent is recovering from the government crackdown on the lucrative video game industry last year and saw its disappointing earnings estimates for the fourth quarter.

But China has resumed gaming approvals in December and its shares have soared more than 19% since the beginning of the year.

– Bloomberg News contributed to this story –

© Agence France-Presse