Tencent has raised $6 billion in the latest big-ticket dollar bond sale in Asia, where issuers have tapped markets for a record of nearly $150 billion in dollar-denominated funding so far this year, reported the Financial Times.
The Chinese social media and gaming group priced the four-tranche dollar bond on Thursday, according to a term sheet seen by the Financial Times. The deal comes on the heels of a strong first-quarter performance for Tencent and marks the largest dollar bond sale by a Chinese company this year.
The largest, 10-year tranche of $2.24 billion delivers annual interest payments of 2.39%, or about 1.7 percentage points above the current 10-year US Treasury yield. The company also priced its first 40-year debt, raising $750 million at a coupon of 3.29%.
The Tencent deal takes this year’s total dollar debt issuance in Asia, excluding Japan, to $148.4 billion. That is a record for this point in the calendar and up $9.3 billion from a year ago, according to data from Dealogic.