Tencent plans $4.5 billion bond sale to fund AI expansion

Tencent Holdings is preparing to raise at least $4.5 billion through a new bond offering consisting of US dollar and offshore Chinese yuan (dim sum) notes. The company plans to issue 10-year and 20-year dollar bonds, alongside 10-year and 30-year offshore yuan securities.

This financing move follows a significant increase in Tencent’s capital expenditure, which more than doubled to 96.3 billion yuan ($14.4 billion) in the first half of 2026 compared to 45.9 billion yuan the previous year. The surge in spending is driven by investments in computing equipment, software, and data centers to support expanding artificial intelligence operations, alongside its gaming, advertising, and cloud businesses.

For the dollar-denominated portion, Tencent has engaged several major banks, including JPMorgan, Goldman Sachs, HSBC, and Morgan Stanley, to manage the offering. Initial guidance for the 10-year dollar notes was set at approximately 115 basis points over comparable US Treasury bonds.