The owner of TikTok intends to receive one of the largest loans in Asian history – $9.5 billion

The Chinese company ByteDance, which owns the short video service TikTok, is in the process of obtaining a loan in the amount of $9.5 billion for a period of three years. If successfully negotiated, this will be the largest corporate dollar loan for Asian countries (excluding Japan). Bloomberg writes about this, citing its own informed sources.

Image source: Solen Feyiss / unsplash.com

The report said that Citigroup, Goldman Sachs and JPMorgan act as coordinators of the fundraising process. It is also known that the loan period, if necessary, can be extended to five years. The terms of the loan provide for an additional placement option, which will expand the amount of borrowing above $9.5 billion. According to Bloomberg, part of the funds will be used to refinance a $5 billion loan taken out in 2021. In addition, the raised funds are planned to be used as working capital.

ByteDance appears set to take advantage of the Asian credit market, which is experiencing liquidity shortages amid low deal flows. The volume of dollar loans, excluding bilateral agreements, in the Asian region excluding Japan fell by 44% in the first half of the year to about $45.5 billion, the lowest level since 2010. Official representatives of ByteDance have so far refrained from commenting on this issue.

Founded in 2012, ByteDance has quickly become one of the leading social media companies thanks to the popularity of TikTok and its Chinese counterpart Douyin. Despite this success, the company is looking to expand beyond its core business, where online advertising generates the lion’s share of its revenue. In the home market, ByteDance is among the largest IT companies that have invested billions of dollars in developments in the field of artificial intelligence and the creation of generative neural networks. In the global market, the company plans to roll out an online shopping platform that will be available in the US and Europe, where the TikTok video service is most popular.

admin

Share
Published by
admin

Recent Posts

Scientists have found a way to ensure fast charging and long service life of lithium-sulfur batteries

Two independent research groups have reported an advance in the development of lithium-sulfur batteries that…

3 hours ago

The US government considers GlobalFoundries a good candidate to save Intel

Until now, it was believed that large suppliers of semiconductor products such as Qualcomm and…

4 hours ago

Microsoft and Ubisoft have solved the problem of Assassin’s Creed compatibility with Windows 11 24H2

Microsoft has lifted restrictions on updating Windows 11 to version 24H2 for computers running Assassin's…

4 hours ago

Windows 11 will become smarter: Microsoft is testing AI file search

Microsoft is testing a new artificial intelligence (AI)-powered search feature in the latest build for…

5 hours ago

Merger instead of sale: Perplexity AI wants to save TikTok in the US

Perplexity AI proposed on Saturday, a day before TikTok was blocked in the United States,…

5 hours ago