[Tencent Plans Dual-Currency Bond Issuance to Raise $3 Billion, Returning to the U.S. Dollar Bond Market After Five Years to Prepare for AI Transformation] According to monitoring by Beating, Tencent Holdings is preparing to issue dual-currency bonds in U.S. dollars and offshore renminbi (Dim Sum bonds) to raise approximately $3 billion. The transaction could be priced as early as Tuesday. Sources revealed that Tencent has obtained regulatory approval to issue up to $4.5 billion in offshore debt, though it may not fully utilize the quota this time. If successfully priced, this will mark Tencent's first U.S. dollar bond issuance since 2021 and its second offshore renminbi bond issuance following its debut last year. Tencent has reportedly hired investment banks to promote the multi-tenor bond issuance, planning to issue 10-year and 20-year U.S. dollar bonds, as well as 10-year and 30-year offshore renminbi bonds. The proceeds will primarily be used for refinancing and general corporate purposes. This issuance comes as Beijing recently decided to allow certain leading insurance companies to purchase Dim Sum bonds through an expanded Southbound Trading program, stimulating domestic demand for offshore renminbi bonds. Regarding debt repayment pressure, Tencent management disclosed during a roadshow conference call that the company has $3.5 billion in debt (including bilateral loans) maturing this year, with another $2.8 billion maturing next year. Bloomberg data shows that Tencent has no publicly issued offshore bonds maturing in 2026, but a $2.5 billion note will mature in 2028. Behind the refinancing effort is Tencent's urgent need to accelerate its transformation toward artificial intelligence. Last month, Tencent reported its slowest revenue growth in six quarters. To reverse the situation, Tencent has pledged to at least double its AI investment this year to over RMB 36 billion (approximately $5.3 billion). Currently, Tencent remains behind competitors such as ByteDance and Alibaba in terms of user adoption and progress in developing large language models. [Original Link]