Tencent Holdings is considering an offshore bond sale of as much as $5 billion, according to Bloomberg, which cited people familiar with the matter. The proposed deal could be denominated in U.S. dollars and offshore yuan, with issuance possible as early as this month. The move would place Tencent among major technology companies turning to debt markets as artificial intelligence infrastructure spending rises.
Bloomberg said the financing discussion comes as global tech groups raise large sums to support AI demand. Alphabet, Google’s parent company, has already sold $25 billion in U.S. dollar bonds and also completed its first Australian dollar bond sale. Meta, Microsoft and Amazon are also expected to pursue equity or convertible bond financing, according to the report.
Morgan Stanley estimates that global AI-related bond issuance will approach $570 billion by 2026, more than double last year’s level. Tencent has not been described in the report as having finalized terms, and the timing and structure remain under consideration.
Tencent Holdings is considering an offshore bond sale of up to $5 billion, Bloomberg reported on Oct. 8, citing people familiar with the matter, as technology companies step up fundraising to meet artificial intelligence demand.
The bonds could be denominated in U.S. dollars and offshore yuan, and the offering could come as early as this month, according to the report.
AI infrastructure spending is driving debt issuance
Tencent’s deliberations come as global technology giants take on large amounts of debt to fund AI infrastructure. Alphabet, Google’s parent company, has already issued $25 billion in U.S. dollar bonds and also launched its first Australian dollar bond sale.
Bloomberg said Meta, Microsoft and Amazon are also expected to follow with equity or convertible bond financing.
Wall Street forecast points to a larger market
Morgan Stanley estimates that global AI-related bond issuance will approach $570 billion by 2026, more than double last year’s level.
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