Tencent Holdings has applied to the Hong Kong stock exchange to be authorized to initiate an international bond offering as part of a global medium-term note campaign.
Tencent disclosed that the group plans to be part of the Hong Kong Stock Exchange for its bond offer within a 12-month duration starting on May 25 this year - the announcement date, through debt issuance to investors.
The Chinese technology behemoth said the notes will be issued in series with various dates and terms of issue and can be denominated in any currency in accordance with applicable rules and regulations.
The previously disclosed listing had a maximum cap of $20 billion, of which around $12 billion of such notes were already outstanding, Tencent bared in a separate statement. The limit means future transactions with Tencent would have to be below $8 billion.
The group hired the expertise of HSBC, Bank of America, Goldman Sachs and Morgan Stanley as joint global coordinators and the finance giants would spearhead a host of calls with fixed-income capitalists Tuesday, based on the term agreement.
The completion of Tencent's proposed notes issuance will depend on many key factors, including but not restricted to world market situations, corporate requirements of the firm and investor confidence.
Japanese game developer Marvelous Inc also disclosed that Tencent was buying a 20 percent investment valued at around $65 billion in the company on May 26.
As this developed, Tencent Holdings disclosed on Tuesday that it will invest half trillion yuan ($70 billion) in the next five years to boost its technology portfolio, including artificial intelligence, cybersecurity, and Cloud computing.
Other major components in the latest investment will include blockchain, 5G Network, data centers, supercomputer hubs, new software for the Internet of Things and Quantum Computing, senior executive vice president of Tencent Dowson Tong said in an interview.
Tencent has been bolstering its engagement in blockchain, with the technology being a state-sponsored program in China. At the end of 2019, the company rolled out a digital ledger technology-powered invoicing program and was given the go signal by the Hong Kong regulator to commence work on a blockchain-based digital bank.
Shares of the company shot up 2.6 percent following its planned tech venture announcement. Tencent has pointed out that while its Cloud businesses slowed down in the midst of the ongoing global health problem, it estimates to see faster Cloud services and enterprise operating system integration from offline businesses in the long term.
