(June 24): ByteDance Ltd, the developer of TikTok, is in preliminary talks with banks for a borrowing of about US$20 billion ($25.95 billion), people familiar with the matter said, in what would be the firm’s largest offshore loan yet at a time when it’s boosting investments in artificial intelligence (AI).
The Beijing-based social media conglomerate has approached banks for the new-money loan, which could carry a three-year tenor, with the option to extend to as long as five years, the people said, who asked not to be identified discussing private matters. It’s unclear how ByteDance would use the funds, the people said, adding that discussions are in early stages and details could change.
ByteDance didn’t respond to a request for comments.
ByteDance has joined an intensifying global push into AI. The Chinese tech firm is weighing plans to boost capital spending to as much as US$70 billion this year to expand its data centres and other AI infrastructure. The figure could climb to US$100 billion next year if economic and business conditions remain favourable.
Elsewhere, four US hyperscalers — Amazon.com Inc, Alphabet Inc, Microsoft Corp and Meta Platforms Inc — are planning as much as US$725 billion in capital spending this year, largely focused on AI data centre equipment.
Alongside SoftBank Group Corp’s recently secured US$40 billion bridge facility to fund its investment in US tech giant OpenAI, ByteDance’s proposed borrowing stands out as a rare bright spot for Asia-based banks in an otherwise sluggish lending market. Loan volumes in Asia Pacific outside Japan, denominated in dollars, euros and Japanese yen, have fallen 20% so far to a 16-year low of US$61 billion compared with the same period last year, according to Bloomberg-compiled data.
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The last time ByteDance tapped the global loan market was in 2024, when it raised US$10.8 billion via more than 20 lenders, comprising international and Chinese banks. Citigroup Inc, Goldman Sachs Group Inc and JPMorgan Chase & Co were the coordinators of that borrowing, the proceeds of which were partly used to refinance a US$5 billion dual-tranche facility raised in 2021.
ByteDance has long been regarded as a prime IPO candidate, though it’s given few signs it’s in a hurry to do so. Over the past year, the Chinese company has exited businesses such as gaming, raising capital to focus on its core AI and social media arms.
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