ByteDance Ltd., the Chinese conglomerate behind TikTok, is pursuing a record-breaking $9.5 billion loan, setting a new benchmark for dollar-denominated corporate loans in Asia outside Japan. This ambitious financing move highlights ByteDance’s strategic push to capitalize on Asia’s loan market, which currently boasts ample liquidity but has seen a significant drop in deal flow.
Citigroup, Goldman Sachs, and JPMorgan are spearheading the financing, which offers a three-year term with an option to extend up to five years. The loan’s size exceeds earlier expectations, reflecting ByteDance’s eagerness to leverage the current market conditions.
Despite a 44% decline in dollar loan volume in Asia (excluding Japan) to $45.5 billion in the first half of the year—its lowest since 2010—ByteDance’s substantial borrowing underscores its growth ambitions.
The funds will be used to refinance an existing $5 billion dual-tranche facility from 2021 and support working capital needs. The new loan features a greenshoe option, potentially expanding the total facility beyond $9.5 billion, and offers an opening interest margin of 85 basis points over the Secured Overnight Financing Rate.
Founded in 2012 and based in Beijing, ByteDance has rapidly ascended to prominence with its popular Douyin app in China and TikTok globally. The company is diversifying beyond online advertising into e-commerce and generative AI, while TikTok plans to expand its live shopping platform into additional European markets following its success in the US.
I’m a finance writer with three years of experience in investment analysis. At Investorwelcome , I translate complex financial concepts into clear, actionable insights to help investors navigate the market with confidence. Combining my solid academic background with practical industry knowledge, I’m dedicated to providing readers with accurate and timely information. My goal is to empower both new and seasoned investors by simplifying intricate data and offering strategic advice. When I’m not writing, I stay engaged with market trends and investment innovations to ensure my content remains relevant and valuable.
