Tencent Is Said to Eye Jumbo Dollar Loan at Its Lowest Cost

Tencent Holdings Ltd. is seeking to raise a facility of about $5 billion from banks, marking its return to the loan market after more than two years.

The Chinese social media giant is in talks with banks for a five-year club loan with a price talk for the margin in the area of 80 basis points over Libor, according to people familiar with the matter. Terms of the loan are not final yet but the proceeds will be used for refinancing and general corporate purposes, said the people, who aren’t authorized to speak publicly and asked not to be identified.