Tencent Music prices $1 billion US dollar bond sale (updated)

Tencent Music Entertainment

03/09/2026 02:17

Updates September 3 story with pricing details from Tencent Music's September 4 press release
By Yantoultra Ngui
HONG KONG, Sept 3 (Reuters) - Tencent Music Entertainment Group 1698.HK has priced a $1 billion U.S. dollar bond offering, split evenly between five- and 10-year senior unsecured notes, according to a press release on Friday.
The Chinese music-streaming company sold $500 million of 5.050% notes due 2031, and $500 million of 5.650% notes due 2036, the release showed.
The five-year notes were sold at 99.804% of face value to yield 5.095%, or 60 basis points over the benchmark U.S. Treasury, while the 10-year notes were sold at 99.638% of face value to yield 5.698%, or 95 basis points over the benchmark Treasury, separate pricing term sheets showed.
The company gave initial price guidance of about 90 basis points over the five-year U.S. Treasury yield and about 125 basis points over the 10-year Treasury yield, according to a term sheet on Thursday.
Tencent Music had drawn more than $5.4 billion in orders for the offering, including $670 million of demand from joint lead managers and $100.4 million of additional proprietary orders.
Tencent Music plans to use the money for general corporate purposes, including refinancing offshore debt and share repurchases.
Moody's rates Tencent Music A2, while S&P Global Ratings assigns an A rating and Fitch rates it A-. The new notes are rated A2 by Moody's and A by S&P.
JPMorgan JPM.N is a bookrunner, alongside Goldman Sachs GS.N and HSBC HSBA.L. UBS UBSG.S, Bank of China 601988.SS and MUFG are joint lead managers. 


 (Reporting by Yantoultra Ngui; Editing by Muralikumar Anantharaman, Thomas Derpinghaus, Tomasz Janowski and Cynthia Osterman)
 ((Yantoultra.Ngui@thomsonreuters.com;))