Tencent has priced four notes with principal of US$1.8 billion and CNY26 billion. Its October 14, 2026, announcement gives each tranche’s coupon, maturity and offer price, and estimates net proceeds of US$1.79 billion and CNY25.89 billion. Tencent expected the notes to be issued on October 21, subject to conditions. Tencent’s pricing announcement sets out the terms.
The four priced tranches
The notes carry annual coupons ranging from 6.10% to 6.75% for the dollar tranches and 2.40% to 3.00% for the offshore-renminbi tranches. Tencent set the dollar notes’ offer prices at just below par; both renminbi notes were offered at par. The offer price is stated as a percentage of the note’s principal.
| Tranche | Principal | Annual coupon | Maturity | Offer price (% of principal) |
| U.S.-dollar notes | US$1.30 billion | 6.10% | October 21, 2036 | 99.859% |
| U.S.-dollar notes | US$500 million | 6.75% | October 21, 2046 | 99.880% |
| Offshore-renminbi notes | CNY20 billion | 2.40% | October 21, 2036 | 100.0% |
| Offshore-renminbi notes | CNY6 billion | 3.00% | October 21, 2056 | 100.0% |
Estimated proceeds and stated use
After underwriting fees, discounts and commissions, Tencent estimated net proceeds of about US$1.79 billion from the dollar notes and CNY25.89 billion from the renminbi notes. The company said it intended to use the net proceeds for general corporate purposes.
Reuters reported on October 13 that the proposed fundraising was connected to Tencent’s investment in AI and IT infrastructure. Reuters also reported first-half 2026 capital expenditure of CNY96.3 billion, compared with CNY45.9 billion in the same period a year earlier. The final pricing announcement describes the proceeds’ intended use as general corporate purposes. Reuters’ report covered the earlier proposal, before Tencent announced the final terms. NeoTeo previously covered the reported order-book demand in its earlier report on Tencent’s bond offering.
Issue date and eligible buyers
Tencent said the notes were expected to be issued on October 21, 2026, subject to conditions precedent. The subscription agreements could be terminated, and the issue might not proceed.
The U.S.-dollar notes were offered to qualified institutional buyers under Rule 144A or in offshore transactions under Regulation S. Tencent said the offshore-renminbi notes were offered offshore to non-U.S. persons under Regulation S, and that none of the notes would be offered to the public.
