Tencent is considering an offshore bond sale of up to $5 billion, Bloomberg reported on October 8. The offering could come as early as this month.

The bonds would be denominated in US dollars and offshore yuan. The funds are expected to finance Tencent’s push into artificial intelligence infrastructure.

The move follows a $4.66 billion bond offering in June, the company’s largest since 2020. Big Tech firms are racing to fund AI data centres and chips.

SoftBank raised $11.1 billion in junk bonds last month for similar AI ambitions. The AI buildout is driving a global wave of corporate borrowing.

Tencent has not confirmed the plan. But analysts say the company has ample room to borrow, given its strong cash flows from gaming and advertising.

Chinese tech giants have been cautious borrowers in recent years. Tencent’s return to the bond market signals confidence in its AI investment plans.

The offering is expected to draw strong demand from global investors hunting for yield. Tencent’s bonds are rated investment grade by major rating agencies.