Tencent Raises US$1.27 Billion in Offshore Yuan Bond Deal
Tencent Holdings, the Chinese tech giant and gaming leader, has successfully raised 9 billion yuan (US$1.27 billion) through an offshore yuan bond deal. The company, headed by CEO Ma Huateng, also known as Pony Ma, initially targeted around US$1 billion for the fundraising.
The bond deal, which closed recently, saw final pricing 50 basis points tighter than initial guidance. It included 2 billion yuan of five-year bonds at 2.1%, 6 billion yuan of ten-year bonds at 2.5%, and 1 billion yuan of thirty-year bonds at 3.1%. This indicates strong investor confidence in Tencent's financial health and future prospects.
Tencent executives have stated their aim to achieve sustainable monetisation of the company's artificial intelligence projects. To support this, the company has been reinning in capital expenditure after heavy investment in AI. Spending on capital expenditure dropped significantly from 36.6 billion yuan in Q4 2024 to 19.1 billion yuan in Q2 2025.
Tencent Holdings has successfully raised a substantial amount through its offshore yuan bond deal, demonstrating investor confidence in the company's future. The funds raised will support Tencent's ongoing efforts to sustainably monetise its AI projects, following a period of significant investment in this area.
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