China’s Tencent raises $6 billion in largest Asian bond sale amid US-China tension

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China’s Tencent raises $6 billion in largest Asian bond sale amid US-China tension

Tencent Holdings Ltd., the Shenzhen-based, two-decade old, Chinese multinational conglomerate holding company primarily focused on Chinese social media and gaming, said on Thursday that the Hang Seng-listed Chinese conglomerate had raised a stark upsum of $6 billion in a US Dollar-denominated bond sale, marking the largest debt deal sealed by any Asian corporation this year thus far.

In point of fact, according to a term sheet, the Tencent Holdings’ bond sale deal that was finalized earlier in the day, had raised $750 million in a debt scheduled to be matured in 40 years, $2 billion in a debt due to be matured in 30-years, $2.25 billion in a 10-year alongside $1 billion in a five-year debt, while the Tencent Holdings Ltd., the second-most valuable company in Asia by market cap, had sold the debts due to be matured in 40 years for the first time in its history.

Besides, although demands for the Tencent’s dollar-denominated bonds were closing in to $36 billion according to two sources who wished to remain anonymous since the information were yet to be made public, the final pricing of each of the debts was lower than anticipated, the terms sheet had revealed.

Tencent bond sale raises $6 billion despite US-China tension

Aside from that, the Tencent’s May 28th bond deal was underway in the May 27th’s NYSE-trading session, while the US Secretary of State Mike Pompeo was quoted saying that the China-controlled autonomous island city of Hong Kong did no longer require any kind of special treatment under the US laws, raising the stakes higher in a blazing issue which could have far-reaching consequences.

Meanwhile, adding that the latest US attempts to provoke an already battered Financial HubSpot of Asia to shadow a path towards further slaughtering, had little or no impacts on Tencent bond sales, a banker from one of the underwriter of the Tencent debt deal who declined to be identified given the sensitive nature of the issue, said earlier on Thursday, “When I saw that headline come up while the Tencent book was still open I thought to myself ‘is that going to be unhelpful?’ I thought it might have been, but it turned out that it didn’t have an impact.