Bilibili (HKG:9626) priced $700 million of convertible bonds due 2031, as part of a broader financing deal involving Tencent (HKG:0700), according to a Hong Kong bourse filing on Sunday.

The bonds will bear no interest and mature Sept. 15, 2031. They will be convertible into Bilibili Class Z shares at an initial conversion price of about HK$155.79 per share.

Tencent will purchase $200 million of the notes through a subsidiary and concurrently sell Bilibili 26.3 million Class Z shares.

Separately, Bilibili will repurchase up to $300 million of its shares, including about $200 million from Tencent and roughly $100 million through delta-related repurchases.

Bilibili will use proceeds from the bond offering to fund the share buybacks, strengthen its AI initiatives, produce content and for general corporate purposes.