The Zhitong Finance App learned that according to media reports, Tencent Holdings (00700) has begun promoting the issuance of US dollar and offshore RMB bonds. The offering is expected to raise about 5 billion US dollars to support its increasing investment in the field of artificial intelligence (AI). Most of this AI investment will be used to purchase chips. It is expected that the above bonds may be priced as early as October 13.

The report quoted people familiar with the matter as saying that Tencent has set the initial pricing guidance range for the 10-year and 20-year US dollar bonds it plans to issue at about 115 and 140 basis points higher than similar US Treasury bonds, respectively. In addition, Tencent is also promoting 10-year and 30-year offshore RMB bonds, with pricing guidance ranges of around 2.9% and 3.5%, respectively.

According to reports, Tencent's capital expenditure may remain high for the rest of this year and into 2027, which means that according to the level of the second quarter of this year, its annual expenditure will be slightly higher than 200 billion yuan.

This bond issue is part of a broader wave of global tech companies raising capital for AI-related projects. However, investors are also increasingly worried about whether spending on data centers, chips, and model development will provide sufficient returns.

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