Tencent’s tight loan price forces banks to balance return against relationship

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By Pan Yue
28 Jan 2021

Tencent Holdings is testing bank appetite for a jumbo loan of $6bn as it gets ready to once again shun syndication in favour of a club deal. But the razor-thin pricing on offer is likely to pose a challenge — as will a recent crackdown on some of China’s largest technology companies. Pan Yue reports.

Hong Kong-listed Tencent, which is behind popular social media app WeChat, is talking to its relationship banks for a $6bn loan, set to be the largest corporate loan from Asia since 2019, when Tencent itself raised $6.5bn, shows Dealogic data.

The company is paying a margin of 80bp ...

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