Bilibili Plans $700 Million Notes, Tencent Participates
Bilibili plans to raise $700 million through zero-coupon convertible senior notes due in 2031, including a $200 million investment from Tencent and a $500 million placement with other qualified institutional investors outside the United States. The notes can be converted into Bilibili Class Z shares, potentially lowering borrowing costs but creating future dilution. The financing is paired with an equity placement of about 7 million new Hong Kong-listed shares, Tencent’s sale of roughly 26.4 million shares for approximately $400 million, and up to $300 million in share repurchases. Bilibili said the transactions will support AI initiatives, user engagement, operational efficiency, share repurchases and general corporate needs, subject to customary conditions and shareholder approval. The package is designed to strengthen Bilibili’s capital structure while securing Tencent’s continued financial participation.