Tencent allegedly negotiated about $5 billion in loans with banks


On the evening of August 7, Sina Technologies News Beijing time, Bloomberg today quoted people familiar with the situation as saying that Tencent is in contact with banks to discuss about $5 billion in “club loans”.
The loan, which lasts for five years, has an annual interest rate of about 80 basis points higher than the London Interbank Offer Rate (LIBOR), but has not yet been finalized, according to the person familiar with the matter. In addition, other terms of the loan have not yet been finalized.
The loan will be mainly used for refinancing and general corporate purposes. Tencent spokesman Jane Yip has not yet responded to Bloomberg’s confirmation.
The so-called “club loan” refers to the way in which banking organizations coordinate the participation of many member units and provide financing to certain enterprises with good credit and growth according to the agreed loan terms, term and interest rate according to the unified agreement between banks and enterprises.
According to Bloomberg data, Tencent’s last loan financing was in 2017. At that time, Tencent raised $4.65 billion through five-year loans, with an annual profit margin 95 basis points higher than LIBOR.
At that time, Citigroup served as the coordinating bank, lead bank and bookkeeping bank (MLAB) of the loan. Bank of China, Mitsubishi Tokyo UFJ Bank, China Construction Bank Hong Kong Branch and HSBC Holdings were also MLAB. China Development Bank Hong Kong Branch, Mizuho Bank, Australia New Zealand Bank and Standard Chartered (Hong Kong) participated as leading banks, with Bank of Communications of China, Hang Seng Bank and Western Pacific Bank of Australia as the main banks. (Li Ming)