Tencent Music Entertainment Reportedly Weighs Dollar Bond Sale of Up to $1 Billion

Multiple people familiar with the matter said Tencent Music Entertainment Group, a Tencent unit, is considering issuing dollar bonds to raise no more than $1 billion. According to Sina Finance, this would be the company’s first offshore bond sale in six years. Another person familiar with the matter said Tencent Music has hired banks to arrange five-year and/or 10-year bonds, with the deal potentially launching as early as Thursday. Tencent Music is listed in New York and Hong Kong and offers music streaming services similar to Spotify. People familiar with the matter said the company is scheduled to hold a series of calls with global fixed-income investors on Wednesday afternoon, and the bond details may be adjusted depending on market conditions. The proceeds are planned for general corporate purposes, including offshore debt refinancing and share buybacks. Data show that the company has $500 million of bonds due in 2030. Tencent Music did not respond to a request for comment.