Tencent Holdings is leaning into cheap offshore yuan debt to bankroll its artificial-intelligence infrastructure, the latest prominent example of leading Chinese technology firms using that edge over global rivals. The Chinese technology giant sold nearly $5.7 billion of bonds this week to support its AI investments in its largest offering in more than six years. In a shift from its previous debt sales, the deal was dominated by dim sum notes, which carried lower borrowing costs.
Tencent priced 26 billion yuan ($3.9 billion) of offshore yuan securities on Tuesday, with its 10-year and 30-year portions carrying coupons of 2.4% and 3%, respectively, well below the more than 6% yields on the dollar notes. In all, the yuan tranche accounted for more than double the amount raised in the dollar portion.
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