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Report: Tencent raises US$6.5B via dollar loan, scraps VIPKid investment

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Report: Tencent raises US$6.5B via dollar loan, scraps VIPKid investment

Tencent Holdings Ltd. raised US$6.5 billion via a dollar loan, surpassing its earlier US$5 billion target, Bloomberg News reported, citing people familiar with the matter.

The five-year credit facility reportedly pays an all-in pricing of 85 basis points via an interest margin of 80 basis points over Libor. The club loan drew nine lenders, including Bank of America Corp. and Bank of China (Hong Kong) Ltd. The capital will be used for refinancing and general corporate purposes.

The news comes shortly after Reuters reported that Tencent shelved plans to lead a new fundraising round for Chinese online education platform VIPKid.

Tencent initially planned to invest another US$150 million in VIPKid but decided to back out after Beijing issued new regulations targeting online education platforms, according to people familiar with the matter.

VIPKid dismissed the news as untrue, while Tencent did not respond to a request for comment, the report said.