Tencent said to invite banks to join $1.5bn 5-year loan

Hong Kong - Tencent Holdings, Asia’s biggest Internet company, has invited banks to join its $1.5bn syndicated loan, people familiar with the matter said.

The Chinese firm, which operates the WeChat and QQ instant message systems, is offering an interest margin of 102 basis points more than the London interbank offered rate, according to the people, who asked not to be identified because the details are private.

The loan comes amid a flurry of fundraising by Chinese Internet companies, which are providing a haven for investors fleeing mounting credit risks among state-owned enterprises. Baidu, owner of China’s biggest search engine, is seeking a $1bn loan, it said last week.

Canny Lo, a spokesperson for Tencent, didn’t immediately respond to an e-mail and text query about the loan.
Separate people familiar with the matter had said last week that the firm was seeking a five-year facility of $1.5bn to $2bn.