Tencent sells dollar, dim sum bonds amid AI spending spree

Tencent Holdings is selling US dollar and offshore Chinese yuan, or dim sum, bonds in a deal that could raise at least $4.5 billion as the Chinese technology giant seeks funding amid higher spending on artificial intelligence.

The sale comprises 10-year and 20-year US dollar notes and 10-year and 30-year offshore yuan notes, according to term sheets seen by Reuters on Tuesday, which did not specify the size of any tranche.

Tencent set initial guidance for the 10-year dollar notes at about 115 basis points over comparable US Treasury bonds. The 20-year notes were set at about 140 basis points over Treasuries, according to the sheets.