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bytedance

phoenix technology news, beijing time, september 2, according to bloomberg, people familiar with the matter said that bytedance is seeking a loan of us$9.5 billion from banks, which will be the largest dollar-denominated corporate loan project in asia (excluding japan).

citigroup, goldman sachs and jpmorgan chase acted as coordinators for bytedance's latest financing project, with a three-year loan term that can be extended to a maximum of five years, people familiar with the matter said. part of the loan will refinance an existing two-part $5 billion loan. people familiar with the matter said the funds will also be used for working capital purposes. in 2021, bytedance borrowed $5 billion in two parts, one fixed and one revolving.

bytedance’s new loan includes an over-allotment option that will allow it to exceed $9.5 billion. the initial interest rate spread on the loan is 85 basis points above the overnight u.s. dollar benchmark rate.

the size of bytedance’s loan is larger than previously expected, a sign that the company is taking advantage of favorable conditions in asia’s loan market, which is seeing ample liquidity amid sluggish deal flow. excluding bilateral loans, dollar loans in asia excluding japan fell 44% to about $45.5 billion in the first half of this year, the lowest level since 2010, according to data compiled by bloomberg.

currently, bytedance is seeking to expand from its core online advertising business into areas such as e-commerce and generative artificial intelligence.in china, bytedance is one of many large tech companies that have invested billions of dollars in developing large language models and chatbots like chatgpt. overseas, bytedance's tiktok plans to expand its niche live shopping platform to more european markets after its initial success in the united states.

as of press time, bytedance has not yet commented. (author/xiao yu)

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