Tencent Launches $5 Billion Bond Offering to Fund AI Spending

Tencent Holdings has begun marketing the issuance of dollar and offshore renminbi bonds, with the offering expected to raise approximately $5 billion to support its increasing investments in artificial intelligence. According to a person familiar with the matter, citing media reports, the Chinese technology and gaming giant has set preliminary pricing guidance for its proposed 10-year and 20-year dollar bonds at roughly 115 and 140 basis points above comparable U.S. Treasuries, respectively. The source also stated that Tencent is marketing 10-year and 30-year offshore renminbi bonds with pricing guidance around 2.9% and 3.5%, respectively. These bonds could be priced as early as Tuesday.