Tencent draws strong demand for US$4.5 billion debt sale, defying AI scrutiny
Tencent plans to use the proceeds for general corporate purposes, according to the deal term sheet.
Tencent Holdings has attracted nearly four times the amount of investor demand for its plan to raise US$4.5 billion through US dollar and offshore yuan debt offerings. Despite AI spending concerns impacting global markets, investor interest in Tencent's debt sale remained strong, with demand exceeding US$5.6 billion for 10-year and 20-year US dollar notes, and 77 billion yuan (S$14.7 billion) for offshore yuan bonds.
The company intends to utilize the proceeds for general corporate purposes and is increasing investment in AI infrastructure and products. This borrowing comes as technology firms worldwide raise billions for AI investments, although investors are more selective about companies funding costly AI infrastructure due to elevated borrowing costs.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
