Tencent obtained 8.3 billion dollars from banks in February. This sum is exceptionally high even for the Chinese internet giant. As is usual with Chinese companies, the whole thing only came about in a roundabout way. Do investors have to worry about this? But on the contrary!
Reported on the taking out of the largest offshore syndicated loan by a Chinese company since 2016 Bloomberg not referring to a press release, but to people who are familiar with the matter. However, this information policy is quite common among Chinese companies.
Twelve banks are said to have participated in the deal, which was signed on February 4th, as is now known. In addition to Asian banks, Bank of America and JPMorgan will also be there.
The matter is not worrying. Alibaba had previously obtained several billion on the capital market (see list of articles at the end of the text). The low interest rate environment enables strong companies to raise funds cheaply to expand and repay current loans. Tencent originally only wanted to raise $ 6 billion, it had been said in advance. The higher sum ultimately indicates favorable conditions and the confidence of international investors in the company. Tencent remains a staple investment among Chinese tech / internet companies.
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