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# BILIBILI Prices $700M Convertible Notes With Tencent Taking $200M
- URL: https://redfiled.com/bilibili-prices-700m-convertible-notes-with-tencent-taking-200m/
- Published: 2026-09-04T14:40:28.000Z
- Updated: 2026-09-04T15:34:54.000Z
- Description: Bilibili sells zero-coupon 2031 converts at a 28.3% premium, funds up to $300M in buybacks, while Tencent subscribes $200M and sells 26.4 million shares.
- Author: William Hayes
- Tags: BILI, Other

**Bilibili (BILI)** priced **US$700 million** in convertible senior notes due 2031, including **US$200 million** subscribed by **Tencent** through a subsidiary. The deal comes with a concurrent equity placement and a special buyback program of up to **US$300 million**, and the company says proceeds beyond the repurchases go to *AI-driven growth* and general corporate purposes.

The notes are senior unsecured obligations maturing on **September 15, 2031**, and they **will not bear regular interest**, with no accretion of principal. The initial conversion rate is **50.3374 Class Z ordinary shares per US$1,000**, equal to roughly **HK$155.79 per share**, a **28.3% premium** to the September 4 close of HK$121.40 in Hong Kong and a **35.0% premium** to the placement reference price of **HK$115.38**.

Bilibili may redeem the notes for cash on or after **September 28, 2029** if the shares trade at at least **130% of the conversion price** over a specified window, and can also call them once less than **10%** of the original principal remains or upon certain tax events. Holders can require repurchase on **September 15, 2029** or on certain fundamental changes.

Alongside the marketed **US$500 million** tranche, banks placed **6,976,760 Class Z shares** borrowed from third parties at HK$115.38 to let convertible arbitrage investors set up hedging short positions. **Tencent separately sold 26,374,900 Class Z shares** at the same price through a placing agent, and keeps the proceeds; Bilibili issues no new shares and receives nothing from the placement.

On the buyback side, Bilibili was allocated **6,795,540 shares** from the delta offering and agreed to repurchase **13,591,090 shares** held by Tencent, both at HK$115.38\. The Tencent repurchase requires approval by at least **three-fourths of disinterested shareholders** at an extraordinary general meeting to be convened *in the near future*.

The structure lets Bilibili raise long-dated, interest-free capital while buying back roughly 20.4 million shares, partly offsetting the dilution embedded in the converts. It also marks a notable reshuffling of **Tencent's stake**, with the strategic shareholder swapping equity for convertible paper and cash. The notes were offered only to non-U.S. qualified institutional buyers under Regulation S, and the company cautions there is no assurance the transactions close.

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This is a factual summary of a public filing or press release, not investment advice. Verify all figures against the source before acting on them.