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Recently, there are reports that ByteDance is actively negotiating with relevant financial institutions, hoping to refinance its existing $5 billion loan for three years. This move is expected to become one of the largest loan refinancing transactions by Chinese borrowers this year.

Previously, ByteDance had finalized a total of US$5 billion in loans in 2021, of which half was term credit and half was revolving credit. This refinancing may be to reduce financing costs, optimize debt structure or meet other financial needs. The reporter asked ByteDance for confirmation, but the other party declined to comment.

A senior financial observer told the 21st Century Business Herald reporter that dollar loan refinancing can adjust the maturity structure and interest rate structure of corporate debt. At the same time, it can also support corporate business expansion and increase capital reserves.

Through refinancing, companies can convert short-term debt into long-term debt, reduce short-term debt repayment pressure, and make debt repayment more stable and orderly. When market interest rates fluctuate, companies can seize the opportunity to refinance at a lower interest rate, thereby reducing overall interest expenses.

In terms of the methods of refinancing US dollar loans, there are mainly three methods: syndicated loan refinancing, bond issuance, and negotiated adjustments with the original lending bank.