Tencent aims to raise $3 billion in dual-currency bond sale

Tencent Holdings Ltd. plans to raise about $3 billion through a sale of US dollar and offshore yuan bonds, marking the Chinese internet giant's return to dollar debt markets after a five-year hiatus, according to people familiar with the matter.

"The company's strong net cash position and low leverage ratios support the issuance, and we expect Tencent to maintain that profile over the next two years," S&P Global Ratings said in a statement. The notes are expected to carry ratings of A1 from Moody's, A+ from S&P and A from Fitch.

The Shenzhen-based company has mandated JPMorgan Chase & Co., HSBC Holdings Plc and Morgan Stanley as joint global coordinators for the proposed dollar notes, while Bank of China Ltd., CITIC Securities Co., HSBC, ICBC Asia and JPMorgan are coordinating the offshore yuan tranche. Tencent is offering 10-year and 20-year US dollar bonds alongside 10-year and 30-year offshore yuan notes, term sheets show. The company has secured regulatory approval for as much as $4.5 billion in offshore issuance quota but may not use the full amount in this offering, people with knowledge of the matter said.

The deal comes as part of Tencent's $30 billion global medium-term note program, with proceeds earmarked for refinancing and general corporate purposes. It follows the company's 9 billion yuan ($1.3 billion) dim sum bond in September 2025 — its first offshore bond in four years — and its last dollar bond, a $4.15 billion multi-tranche issue in April 2021. The dual-currency structure supports the growing offshore yuan bond market, which has seen record panda bond issuance in 2026 as foreign borrowers tap onshore Chinese debt markets. For Tencent, the offering provides an opportunity to lock in long-term funding at a time when global credit markets remain receptive to high-grade Asian corporate debt.

This article is for informational purposes only and does not constitute investment advice.