Chinese leading gaming and social media Tencent Holdings Ltd (HKG: 0700) announced having raised $6 billion from a U.S dollar corporate bond sale making it the largest debt deal by an Asian company in 2020.
According to the provided term sheet, the deal was finalized on May 27 and the company raised $1 billion in five-year debt, $2 billion in 30-year and $750 million in 40-year debt.
Currently Tencent is Asia’s second valuable company by market capitalization. This was the first time ever the company raised a 40-year debt.
Insider sources under anonymity since they aren’t allowed to speak publicly on the matter revealed that demand from investors reached $36 billion. The sources said elaborate details on such will be availed to the public soon.
The bond deal was underway when U.S secretary of state, Mike Pompeo announced Hong Kong will no longer be granted special treatment under U.S law since there is a constant increasing influence from China in Hong Kong.
Citing data from Refinitiv, before Tencent deal, the biggest Asian bond was a $4 billion bond issued by Scenery Journey back in January followed by $2.9 billion bond issued by Sinopec a Chinese state owned oil company.
Tencent’s deal also goes down on record as the biggest bond by a non-financial company in Asia issued year to date.