Oct 8 (Reuters) – Tencent is considering raising up to $5 billion via an offshore bond sale, Bloomberg News reported on Thursday, as the Chinese technology giant ramps up spending on AI and computing infrastructure in line with its peers.
Here are the details:
• The bonds could be issued in US dollars and offshore yuan, with a sale potentially happening early this month, the report said, citing people familiar with the matter.
• The move follows Tencent’s $4.66 billion bond offering in June, its largest debt deal since 2020.
• Proceeds from the June issuance were used for general corporate purposes, including AI development.
• News of this potential fundraising comes as global tech companies tap debt markets to finance AI-related investments and infrastructure, despite growing concerns regarding the sector’s stability.
• Last month, Japanese technology investment conglomerate SoftBank Group raised about $11.1 billion through a corporate junk-bond offering to fund its AI plans.
• Tencent did not immediately respond to a Reuters request for comment.
(Reporting by Shravya Marakini in Bengaluru; Editing by Rashmi Aich)
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