Tencent Holdings is reportedly considering an offshore bond sale of up to $5 billion to finance its growing AI investments. The offering could happen as early as this month and may be denominated in U.S. dollars and offshore yuan. The potential sale reflects a broader trend of technology companies turning to debt markets to fund AI development.
In June, Tencent issued nearly $4.7 billion in bonds, its largest sale since 2020. Some of the proceeds also went toward AI.
Tencent’s spending on AI projects and computing infrastructure rose 176% in the June quarter as it competed with Alibaba and ByteDance. News of the potential sale sent Tencent shares lower in Hong Kong trading.