- Asia’s biggest Internet firm raising amount from $1.5 billion
- Banks have May 20 deadline for committing to the loan
Tencent Holdings Ltd., Asia’s biggest Internet company, is likely to raise as much as $4 billion in a syndicated loan amid strong demand from investors, people familiar with the matter said.
The Chinese firm, which operates the WeChat and QQ instant message systems, has received subscriptions totaling about that amount ahead of a May 20 deadline for banks to commit, according to the people, who asked not to be identified because the details are private. The company hired banks last month for a loan of $1.5 billion, people said at the time.
China’s Internet giants have provided a haven for credit investors fleeing mounting default risks among state-owned enterprises. Tencent is building WeChat into an all-purpose platform for e-commerce and is investing billions of dollars in startups providing services from food delivery to movie ticketing.
Canny Lo, a spokeswoman for the company, didn’t respond to an e-mail and text message seeking comment.