Technology

Tencent seeks $6bn loan after deals – sources

Tencent, the creator of the messaging platform WeChat, is in talks with banks for a $6 billion loan, in accordance with individuals accustomed to the matter.

That can be the largest greenback loan syndicated in Asia for a Chinese agency since 2019, in accordance with information compiled by Bloomberg. It would additionally mark a flurry of potential debt financings by tech giants after individuals acquainted stated earlier this month that rival Alibaba Group Holding Ltd. was trying to promote as much as $8 billion of bonds.


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Under the phrases being mentioned, Tencent’s five-year deal would pay an curiosity margin of 80 foundation factors over Libor and supply all-in pricing of 85 foundation factors, the individuals stated, asking to not be recognized as they aren’t authorised to talk publicly. The proceeds are for basic company functions, they added. For extra particulars click on right here.

Tencent has in recent times spent billions of {dollars} shopping for stakes in promising startups, extending its attain in areas from social media to grocery supply. It agreed final month to purchase an extra 10% of Universal Music Group. Other individuals accustomed to the matter additionally stated Friday that Tencent has gotten a EU1.3 billion ($1.6 billion) loan for that deal.

In addition, the company is locked in a fierce battle for customers and advertisers towards nemesis ByteDance Ltd., which runs TikTok. The WeChat operator can also be pushing its gaming portfolios internationally, with hits like Call of Duty Mobile.

A consultant with Tencent declined to remark.

South Africa’s Naspers is the one largest Tencent shareholder with a 31% stake price over $145 billion (near R2.2 trillion).

© 2021 Bloomberg L.P.



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