Tencent (ADR)

Tencent is weighing the issuance of new bonds totaling about eight billion yuan (around $1.1 billion), reportedly as a Dim-Sum bond and its first foreign-currency bond since April 2021. According to official statements, the proceeds would be used for general corporate purposes but are expected to be directed mainly to AI infrastructure. Tencent currently has $17.75 billion of outstanding bonds; Chinese tech firms plan significantly increased AI investments in 2024. » More on deraktionaer.de

Moody's has assigned an A1 rating to Tencent's planned CNY-denominated medium-term notes for senior unsecured debt. The bonds will be issued under a global MTN program of up to USD 30 billion and the proceeds will be used for general corporate purposes. Moody's views the issuance as strengthening an already strong liquidity position and expects Tencent to maintain its strong credit profile thanks to revenue and cash-flow growth and improved operational efficiency. The rating reflects Tencent's leading market position, large user base and improved profitability, but is constrained by China's country rating. » More on de.investing.com

Tencent is increasingly taking stakes in European studios and is using its presence at Gamescom to bolster investments, partnerships and support for European developers. Mobile games are a key growth driver with high marketing costs, giving large international companies like Tencent competitive advantages. European developers cite regulatory hurdles and fewer financing options but see opportunities through local market knowledge and public funding. » More on wiwo.de