CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Tencent raises US$6 billion in bond sale

The sale makes it the largest dollar bond sale in Asia this year, according to Refinitiv data.

Chinese tech giant Tencent on Thursday said in a regulatory filing it has raised US$6 billion in a bond sale and the group will use the proceeds for refinancing and general purposes.

The sale makes it the largest dollar bond sale in Asia this year, far surpassing the US$2.8 billion issue from property developer China Evergrande Group in January, according to Refinitiv data. The notes are expected to be issued on April 11.

Following the announcement, Tencent’s shares slid 1.01% or HK$3.80, at HK$374.20 at around 11.30am Hong Kong time.

The social media and gaming firm said it sold US$1.25 billion in fixed rate five-year notes, US$0.75 billion in floating rate five-year notes, US$3 billion in 10-year notes, and two sets of US$500 million notes separately in seven-year and 30-year notes, it said.

The bonds will carry coupons ranging between 3.280% to 4.525%. For example, for the 30-year notes, the coupon is at a rate of 4.525%.

Tencent last launched a US$5 billion bond 15 months ago.

Deutsche Bank, HSBC, Goldman Sachs, and Morgan Stanley are the joint global coordinators for the latest bond sale.

A rough 2018 as China’s gaming regulator froze out on approving new games to combat gambling addiction

The tech company faced a rough year last year, due to the nine-month long hiatus from China’s gaming regulator in approving games for monetization to curb gaming addiction.

Investors were unnerved by a lack of approval from Chinese regulators on the games from Tencent, causing the group to lose over 20% of its market value in the nine-month period.

In January, China’s regulators approved two of Tencent’s mobile games, which allowed investors to heave a sigh of relief from the dry spell. The firm’s net profit for the last quarter of 2018 fell by 32%, the largest plunge since it got listed in 2004, due partly to one-off losses from its portfolio companies.

Since the regulatory approval announcement in January, the firm’s shares have to-date risen by 9%.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Act on share opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.