Chinese tech giant Tencent Holdings Ltd has completed a $2.5 billion dual-tranche bond sale in the US on April 22, making it the firm’s largest U.S. debt deal to date. This is also the largest ever tech bond from Asia (ex-Japan) and the largest offshore bond sale by Chinese companies that are not state-owned.

The deal is part of the companies medium-term notes (“MTN”) program established earlier this month to enabling it to issue up to $5 billion in bonds over the next year, providing a more flexible financing scheme for its potential buyouts in the further. The deal splits into 3-year and 5-year tranches.

According to a source close to the deal, one of the key objectives of the MTN program is to attract US investors, particularly long-term buy-and–hold asset managers. Luckily, the holistic marketing efforts of Tencent in the past few months has largely paid off, with 2/3 of the 5-year bonds sold to US-based funds, and 80% of the smaller 3-year deals.

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

What you get

Full access to all premium content and our full archives

Members'-only newsletters

Preferential access and discounts to all TechNode events

Direct access to the TechNode newsroom

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

Scully Wan

Beijing based tech contributor. Follows social media, e-commerce, digital currency, healthcare and life science, economy, fashion and design, and everything that involves inter-cultural phenomena. You...