Chinese social media and gaming giant Tencent Holdings Ltd (HKG: 0700) announced on Monday its issuance of a global medium-term note (MTN) program up to USD 20 billion, which is expected to close in the next 12 months.
Fitch Ratings and Moody’s have assigned Tencent’s proposed USD 20 billion MTN program “A+” and “A1” rating, respectively, indicating the issuer has stable financial backing and ample cash reserves. Arrangers of this issuance are BofA Securities and Deutsche Bank, with the participation of Bank of China (Hong Kong) and HSBC in the deal.
The tech tycoon reported total revenue of RMB 108 billion (USD 15.14 billion) for the first quarter of 2020, up 26% year-on-year (YoY), aided by a gaming consumption boom during the lockdown period. The online games segment snagged RMB 37. 3 billion (USD 5.19 billion) in Q1. As of the end of March, Tencent had a net debt of RMB 5.7 billion (USD 801.41 million) and had a free cash flow of RMB 39 billion (USD 5.47 billion).
This article is part of KrASIA’s “China Brief” section, where KrASIA’s reporters will provide quick daily updates about the tech ecosystem in China.