ByteDance, the Chinese company behind TikTok, has secured a massive $29.6 billion loan. The deal is Asia’s second-largest dollar-denominated borrowing this year. The company was initially seeking $20 billion. However, strong interest from banks pushed the facility higher. The deal has not been signed yet. Banks are still confirming their final allocations.
The loan will mainly support ByteDance’s general corporate needs. More importantly, it comes as the company races to expand its artificial intelligence (AI) operations. ByteDance is reportedly considering up to $70 billion in capital spending this year. That figure would be more than double its spending last year. Much of the money could go towards data centres and other AI infrastructure.
The loan also stands out because of its relatively low borrowing cost. ByteDance will initially pay 68 basis points above the Secured Overnight Financing Rate (SOFR). The margin could change if the loan term is extended. Its previous offshore loan had a higher margin of 85 basis points above SOFR. Meanwhile, more than $30 billion in orders reportedly came from lenders before the commitment deadline. That strong demand highlights renewed interest in Asia’s loan market.
Citigroup and JPMorgan Chase are coordinating the financing. The loan has a three-year term, with an option to extend it to five years. It is also the biggest dollar loan ByteDance has pursued since 2024. That year, the company raised $10.8 billion through about 20 lenders. The latest move shows how aggressively ByteDance is preparing for the AI race. At the same time, Amazon, Google parent Alphabet, Microsoft and Meta are planning huge AI investments. Together, their planned spending could reach $725 billion this year.
