Tencent Holdings Ltd. has signed its biggest and cheapest ever dollar-denominated facility in the loan market, according to people familiar with the matter.
The Chinese social media giant’s USD6.5 billion loan is the largest versus local peers Alibaba Group Holdings Ltd. and Baidu Inc., Bloomberg-compiled data show. The five-year facility pays an all-in pricing of 85 basis points via an interest margin of 80 basis points over Libor, said the people who are not authorized to speak publicly and asked not to be identified. The rate is also the lowest among its peers, according to data.
The club loan, which will be used for refinancing and general corporate purposes, drew nine lenders including Bank of America Corp. and Bank of China Hong Kong Ltd., the people said. The company was in talks for a $5 billion deal, Bloomberg earlier reported. Tencent didn’t immediately respond to an email request for comment. Annie Lee & Carol Zhong, Bloomberg
No Comments