58.com-backer Tencent seeks loan of $2 billion US
08 Mar 2017
The Chinese tech giant Tencent Holdings is seeking to acquire new debt funding in the order of $2 billion U.S., according to a recent report published by Reuters. Hong Kong-based Citigroup is coordinating the financing, and at least six Chinese and foreign banks are expected to join.
Tencent is a major shareholder in the Chinese classifieds giants 58.com (NYSE: WUBA) and Ganji.com, as well as operator of its own stuff app Xianbei. Tencent and 58.com recently announced that they will launch a new real estate platform, to be known as Tengcheng Real Estate Platform, under a strategic partnership (which we reported on here).
The news follows on the back of recent reports that Tencent-competitor and parent company of ecommerce giant Taobao.com, Alibaba (NYSE: BABA), is in early stages to acquire a similar amount ($2 to 3 billion U.S.) in loans through its financial services affiliate Ant Financial. (Again, from Reuters).
Tencent raised $7.9 billion in two syndicated loans in the past nine months, including $3.5 billion in October to finance a deal for a majority stake in Finnish mobile game developer Supercell Oy.