Tencent to issue dollar and yuan bonds worth 46hundred million dollars to refinance debt
Tencent disclosed that it will issue a combined total of approximately 46hundred million dollars in offshore dollar- and offshore yuan-denominated bonds to refinance existing debt. The issuance consists of dim sum bonds and long-term dollar bonds, with a total value of approximately 7trillion 329hundred million won in Korean currency.
Tencent, China's largest technology company, disclosed that it had raised approximately 10hundred million dollars by combining offshore dollar- and offshore yuan-denominated bonds on 46day. The company specified that the funds would be used to refinance existing debt. The disclosure was filed with the Hong Kong Stock Exchange.
The offshore yuan-denominated bonds are in the form of dim sum bonds. Their maturities are 10 years and 30 years. The disclosure specified this structure.
The issuance amounts are 10-year bonds worth 110hundred million yuan and 30-year bonds worth 40hundred million yuan. The disclosure specified the issuance amount for each maturity. The company presented this structure to secure long-term funding.
The issuance rate for the offshore yuan bonds was set at 10-year tenor at 2.5%, and 30-year tenor at 3.1%. The disclosure stated the interest-rate levels. The company specified the interest-rate terms.
The dollar-denominated bonds have maturities of 10years and 20years. The disclosure listed the maturity structure separately. The company also stated that the issuance of dollar-denominated bonds was for refinancing purposes.
The issuance amounts of the dollar bonds are 10-year 17hundred million 5,000ten thousand dollars and 20-year 7hundred million dollars. The disclosure recorded the dollar issuance amount for each maturity. The company balanced maturities through the dollar bonds.
The issuance rates for the dollar bonds were set at spreads of 50bp and 60bp, respectively, over U.S. Treasury securities with the same maturities. The disclosure specified the spread levels. The company disclosed the spread terms.
According to the disclosure, the total amount of this issuance converted into Korean won is approximately 7trillion 329hundred million won. The company reconfirmed that it would use the funds raised for refinancing. The disclosure focused on the issuance structure and refinancing purpose.
Sources: 연합인포맥스
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