ByteDance, the developer of TikTok, has secured a US$29.6 billion (S$37.6 billion) loan, according to people familiar with the matter, in Asia’s second-largest dollar-denominated borrowing in 2026.
The Chinese tech giant, which is on the forefront of developing artificial intelligence technology, was originally seeking a US$20 billion facility, but increased the size after gathering strong commitments from banks, said the people, who asked not to be identified discussing private matters. Proceeds will be used mainly for general corporate purpose.
The deal has not yet been signed, as banks are still in the process of signing back to confirm their allocations, one of the people added.
Beijing-based ByteDance has been rushing to build up its AI capabilities as industry peers pour money into related projects.
The company is considering boosting capital spending to as much as US$70 billion in 2026 – more than double the 2025 total – to expand its data centres and other AI infrastructure.
Four US hyperscalers – Amazon.com, Alphabet, Microsoft and Meta Platforms – are also planning capital spending sprees of as much as US$725 billion in 2026, largely focused on AI data centre equipment.
The only dollar-denominated loan deal in the region in 2026 larger than ByteDance’s facility was SoftBank Group’s US$40 billion bridge loan signed in March.
ByteDance’s jumbo loan carries one of the lowest margins for such borrowings among Chinese tech firms.
The opening margin for the loan is 68 basis points over the Secured Overnight Financing Rate, which will adjust if it extends the tenor. Its previous offshore loan carried a margin of 85 basis points over SOFR.
ByteDance did not immediately respond to a request for comment.
ByteDance’s loan deal attracted more than US$30 billion of orders before the commitment deadline, showing strong interest from lenders. The deal offers a break from a lending drought, after Asia’s loan market experienced its weakest first-half performance in 16 years.
Citigroup and JPMorgan Chase are the coordinators of the latest financing, which has a tenor of three years and can be extended to as long as five years.
ByteDance last tapped the global loan market in 2024, when it raised US$10.8 billion via about 20 lenders, comprising international and Chinese banks. BLOOMBERG
