ByteDance Secures Record $10.8 Billion Loan Amid U.S. Scrutiny and AI Expansion

ByteDance Ltd., the Chinese parent company of TikTok, is poised to secure a $10.8 billion loan, potentially marking the largest dollar-denominated corporate facility in Asia, excluding Japan. This financing deal involves around 20 lenders, including both international and Chinese banks, according to sources familiar with the matter.

The loan comes at a challenging time for ByteDance, which faces heightened scrutiny in the U.S. and pressure to divest TikTok. Despite these challenges, the loan has attracted significant interest from lenders, increasing from an initial target of $9.5 billion, reflecting their willingness to extend credit.

Citigroup, Goldman Sachs, and JPMorgan are coordinating the financing, which has a three-year term but can be extended up to five years. Proceeds will be partially allocated to refinance an existing $5 billion dual-tranche facility from 2021.

Founded in 2012, ByteDance has emerged as a leading social media entity, leveraging its popular app Douyin in China to venture into ecommerce. TikTok is also set to expand its live shopping platform into more European markets following initial success in the U.S.

Additionally, the company’s investments in generative AI and large language models represent a significant financial commitment, requiring billions in upfront investment.