HONG KONG (Sept 4): Tencent Music Entertainment Group has priced a US$1 billion US dollar bond offering, split evenly between five- and 10-year senior unsecured notes, according to a press release on Friday.

The Chinese music-streaming company sold US$500 million of 5.050% notes due 2031, and US$500 million of 5.650% notes due 2036, the release showed.

The five-year notes were sold at 99.804% of face value to yield 5.095%, or 60 basis points over the benchmark US Treasury, while the 10-year notes were sold at 99.638% of face value to yield 5.698%, or 95 basis points over the benchmark Treasury, separate pricing term sheets showed.

The company gave initial price guidance of about 90 basis points over the five-year US Treasury yield and about 125 basis points over the 10-year Treasury yield, according to a term sheet on Thursday.

Tencent Music had drawn more than US$5.4 billion in orders for the offering, including US$670 million of demand from joint lead managers and US$100.4 million of additional proprietary orders.

Tencent Music plans to use the money for general corporate purposes, including refinancing offshore debt and share repurchases.

Moody's rates Tencent Music A2, while S&P Global Ratings assigns an A rating and Fitch rates it A-. The new notes are rated A2 by Moody's and A by S&P.

JPMorgan is a bookrunner, alongside Goldman Sachs and HSBC. UBS, Bank of China and MUFG are joint lead managers.

Uploaded by Liza Shireen Koshy