Chinese social media and gaming giant Tencent said it has raised a total of US$6 billion in debt across multiple series of notes.
The deal was finalized early today, with the notes expected to be issued on June 3 this year, according to a term sheet.
Tencent raised US$1 billion in five-year, nearly US$2.3 billion in 10-year, US$2 billion in 30-year, and US$750 million in 40-year debt.
This is the largest transaction by a non-financial company in Asia so far this year, according to a Reuters report.
Martin Lau, President of Tencent, said: "We are pleased with the positive response to this note offering market, reflecting both the resilience of our business, which has been recognised by investors, and the support we need to maintain the Group's strong and robust cash flow as we meet our corporate social responsibility."
After deducting underwriting fees, discounts and commissions, the net proceeds from the issuance of the notes are estimated to be approximately $5.97 billion. Tencent plans to use the net proceeds for refinancing and general corporate purposes.
It is worth noting that this Tencent bond issue is a landmark transaction in the global bond market, achieving a number of remarkable results in terms of both size and cost.
--The scale of the $6 billion bond issue is the largest in the Greater China market since Tencent's 2019 bond issue, and the addition of the 40-year note proves that Tencent's excellent credit has reached the level of the top issuers in the global market.
--The interest rate differential between the 30- and 40-year notes is only five points, the flattest yield curve in the world.
--The 10-year note is the largest issuance of bonds of the same maturity in Asia (other than Japan) since Tencent's 2019 issuance, and the coupon is the lowest in Greater China for 10-year bonds.
--The 30-year note is the largest single-year bond issue in the Greater China region and has the lowest coupon of any 30-year bond in Asia (outside Japan).
--The 40-year note is the largest single-year issuance in Greater China since 2017 and has the lowest coupon of any 40-year bond in Asia (outside Japan).
