ByteDance Ltd., the Chinese tech giant behind TikTok, is seeking a $9.5 billion loan, marking what would be the largest dollar-denominated corporate facility in Asia outside Japan, according to sources familiar with the deal. Citigroup, Goldman Sachs, and JPMorgan are coordinating the financing, which has a three-year term with an option to extend up to five years. The loan amount exceeds initial expectations, signaling ByteDance’s strategic move to capitalize on Asia's liquid loan market despite a significant drop in deal activity this year.

The proceeds from the loan will partially refinance a $5 billion facility ByteDance secured in 2021, with the remainder allocated for working capital. The new loan includes a greenshoe option, potentially increasing the total beyond $9.5 billion, and starts with an interest margin of 85 basis points over the benchmark Secured Overnight Financing Rate. Founded in 2012, ByteDance has rapidly grown into a leading social media player in China with Douyin and has gained global attention with TikTok, which has influenced international relations. The company is now pushing into new areas like e-commerce and generative AI, while expanding TikTok’s live shopping platform into more European markets.