Strong Bank Subscription! ByteDance Reportedly Secures $29.6 Billion Syndicated Loan, Second-Largest in Asia This Year

ByteDance, the parent company of TikTok, is reported to have successfully raised a $29.6 billion syndicated loan, marking the second-largest U.S. dollar-denominated syndicated loan in Asia this year.

The China-based tech giant, actively advancing its artificial intelligence (AI) capabilities, initially sought to raise $20 billion. However, due to strong subscription interest from banks, the company decided to expand the loan size to $29.6 billion. The proceeds will primarily be used for general corporate purposes.

At present, banks are still in the process of signing documents and confirming allocation amounts, meaning the transaction has not yet been formally finalized.

As competitors pour massive investments into AI initiatives, Beijing-headquartered ByteDance is accelerating its efforts to build AI computing capacity. The company is considering raising its capital expenditures this year to as much as $70 billion—more than double last year’s total—to expand its data centers and other AI infrastructure.

U.S. hyperscale cloud providers Amazon (AMZN-US), Alphabet (GOOGL-US), Microsoft (MSFT-US), and Meta (META-US) also plan to spend up to $725 billion in capital expenditures this year, primarily on AI data center equipment.

The only larger U.S. dollar loan in Asia this year than ByteDance’s was SoftBank Group’s $40 billion bridge loan signed in March.

The interest margin on ByteDance’s large-scale loan is among the lowest for similar borrowings by Chinese tech companies. The initial interest rate is set at 68 basis points above the Secured Overnight Financing Rate (SOFR), with the spread adjustable if the term is extended. ByteDance’s previous offshore loan carried a rate of SOFR plus 85 basis points.

ByteDance has not yet responded to requests for comment on the matter.

Prior to the commitment deadline, over $30 billion in subscription orders were placed for ByteDance’s syndicated loan, reflecting strong lender interest. Amid an Asian loan market experiencing its weakest first half in 16 years and suffering from a financing drought, this deal brings a welcome boost to the sector.

Citigroup (C-US) and JPMorgan Chase (JPM-US) are serving as joint coordinators for the financing. The loan has a tenor of three years, extendable up to five years.

ByteDance’s last foray into the global loan market was in 2024, when it raised $10.8 billion through approximately 20 international and domestic Chinese banks.