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Tencent Sells $5 Billion Bond, Drawing Comparison to Alibaba

  • Securities priced at spreads lower than Alibaba’s debt sale
  • Company sold bonds with maturities of 5, 10 and 20 years
A pedestrian walks past Tencent Holdings Ltd.'s headquarters, left, in Shenzhen, China.

A pedestrian walks past Tencent Holdings Ltd.'s headquarters, left, in Shenzhen, China.

Photographer: Qilai Shen/Bloomberg

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Tencent Holdings Ltd. sold $5 billion bonds, the company’s biggest U.S. dollar offering and the first time it’s issued debt since 2015, drawing comparisons to the debt of internet giant Alibaba Group Holding Ltd.

The five-, 10- and 20-year fixed-rate tranches priced at 65 basis points, 105 basis points, and 105 basis points respectively above U.S. Treasuries, compared with the initial price guidance of around 95 basis points, 130 basis points and 135 basis points. The Chinese Internet company also sold five-year floating-rate notes at a 60.5 basis points over three-month Libor, according to data compiled by Bloomberg show.