ByteDance secures $30B loan in Asia's second-largest borrowing of 2026: report

ByteDance, the creator of TikTok, has secured a US$29.6 billion loan, marking Asia's second-largest dollar-denominated borrowing in 2026, according to sources familiar with the matter. The Chinese tech company, which is at the forefront of artificial intelligence development, had initially sought a smaller US$20 billion facility but expanded the size after garnering strong commitments from banks.

The funds will primarily be utilized for general corporate purposes. The deal is still pending as banks finalize their allocations. ByteDance, based in Beijing, is rapidly enhancing its AI capabilities as rivals increase investments in related projects. The company is contemplating a capital spending surge of up to US$70 billion in 2026, more than double the 2025 figure, to expand data centers and AI infrastructure.

Four major US tech firms - Amazon, Alphabet, Microsoft, and Meta Platforms - are also expected to invest heavily in AI data center equipment, totaling up to US$725 billion in 2026. The largest dollar-denominated loan in the region in 2026 was SoftBank Group's US$40 billion bridge loan in March. ByteDance's loan stands out due to its low margin, currently set at 68 basis points over the Secured Overnight Financing Rate, which may adjust if the tenor is extended.

The loan offer garnered more than US$30 billion in commitments before the deadline, signaling robust interest from lenders. This deal comes as a welcome change from the loan market's weak performance in the first half of the year, the weakest since 16 years. Citigroup and JPMorgan Chase are coordinating the financing, which has a three-year term with an option to extend to five years.

ByteDance's last global loan was raised in 2024, amounting to US$10.8 billion from around 20 lenders, including international and Chinese banks.