Asia Tech Wire (Sep 3) -- TikTok parent company ByteDance is seeking a $9.5 billion loan from banks, according to Bloomberg.

This would be the largest dollar-denominated corporate loan program in Asia (excluding Japan), the report said.

Citigroup, Goldman Sachs and JPMorgan Chase are acting as coordinators for the latest financing, which carries a three-year loan term that can be extended to up to five years, the report said, citing people familiar with the matter.

Part of the loan will refinance an existing $5 billion dual-tranche loan that the group raised in 2021, according to data compiled by Bloomberg.

ByteDance's new loan includes an over-allotment option, which will enable the loan to exceed $9.5 billion.

Meanwhile, it pays an opening interest margin of 85 basis points above the benchmark Secured Overnight Financing Rate (SOFR).

In response, ByteDance said it had no comment.

Some senior observers in the financial sector said that dollar loan refinancing can not only adjust the maturity structure and interest rate structure of corporate debt, but also support business expansion and thicken capital reserves.

Just last month, Bloomberg reported that ByteDance is preparing to refinance a $5 billion loan by another three years.