Tencent Holdings Ltd., a Chinese multinational conglomerate holding company, has recently raised a $6 billion in debt. It is the largest debt deal entered into by a corporate in the Asian region in 2020.
The multinational conglomerate and its subsidiaries specialize in several internet-related products and services, AI, technology and entertainment in both China & globally.
As per the recent agreement formed by Tencent, which was recently finalized, it raised $1 billion in 5-year, $2.25 billion in ten-year, $2 billion in 30-year, and $750 million in 40-year debt. It is the 1st time in Tencent’s history that it raised money in debt for a 40-year term.
Additionally, sources familiar with the matter have stated that this transaction has become the largest deal formed by a non-financial company in Asia in 2020. Prior to this Tencent deal, the biggest transaction made by companies in the region were a junk bond worth $4 billion entered with Scenic Journey in January as well as a $2.9 billion bond formed by Sinopec on 7th May. Sources added that the total amount of approximately $712 billion, excluding the latest Tencent’s deal, has been raised by corporates in Asia. This can be considered a robust start of businesses in the region.
This happened along the heels of the company’s announcement regarding its intention to market the dollar bond deal in over a year. Through this deal, it will become a part of the increasing band of borrowers in China’s recovering offshore debt market. The WeChat operator offered the 4-tranche deal, drawing down from the existing global medium-term notes program.
Sources stated that the social media giant in China has raised the funds for general corporate purposes as well as debt refinancing.
The company did not respond immediately to request for comments on the deal.