In the latest big-ticket dollar sale in Asia, the Chinese technology company Tencent Holdings Ltd. has raised $6b in debt; raising 40-year money for the first time in its history.
The Tencent deal was finalized on Thursday where the Chinese and social media company raised $1bn in 5-year debt, $2.24bn in 10-year, $2bn in 30-year and $750mn in 40-year debt according to a term sheet. The deal marks extremely fortunate for the company and marks the largest bond dollar sale by a Chinese company in 2020.
The company posted profits of almost $4bn on sales for the first quarter, and more than by a quarter as per analysts’ expectations.
The bonds are expected to be issued next month from June 3, and the funds raised will be used for general corporate and re-financing purposes.
While most of the people were being stuck at home playing Tencent’s games during the lockdown, this boosted the company’s profits, a very few among the Chinese companies.
As per the data compilation by Refinitiv, the deal was the largest by a non-financial company in Asia this year.