Tesla secures 9b yuan loan from Chinese banks for Shanghai factory
[BENGALURU] Tesla entered into agreements with lenders in China for a secured term loan facility of up to 9 billion yuan (S$1.75 billion), according to a regulatory filing on Thursday.
The electric car maker said it has also signed agreements for an unsecured revolving loan facility of up to 2.25 billion yuan, adding that both the loans will be used for its Shanghai car plant.
China Construction Bank Corp, Agricultural Bank of China, Shanghai Pudong Development Bank and Industrial and Commercial Bank of China are the lenders, according to the filing.
Besides construction and production at the Shanghai factory, the loan may also be used to repay the 3.5 billion yuan debt due to be repaid on March 4 next year.
The factory, which is Tesla's first car manufacturing site outside the United States, is the centerpiece of its ambitions to boost sales in the world's biggest auto market and avoid higher import tariffs imposed on US-made cars.
Reuters reported earlier this week that Tesla and a group of China banks had agreed to a new 10 billion yuan, five-year loan facility for the automaker's Shanghai car plant, citing sources familiar with the matter.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Transport & Logistics
Huawei’s smart car tech offers automakers route to China sales
Sri Lanka to hand management of China-built airport to India, Russia companies
Tesla’s plan for affordable cars takes page from Detroit rivals
Toyota is investing US$1.4 billion to build another all-electric SUV in US
Airbus net profit soars 28% in first quarter
AirAsia discloses new listing plans under RM6.8 billion units merger