FREE Shipping in USA

   |    Subscribe our Newsletter
0

Your Cart is Empty

Tesla confirms up to $1.6 billion in China banks financing for Shanghai Gigafactory

by Eva Fox December 27, 2019

Tesla confirms up to $1.6 billion in China banks financing for Shanghai Gigafactory

Tesla began 2019 with an unprecedented deal: he became the first foreign automaker to own a Chinese factory without a joint venture in China.

On December 23, the Tesmanian blog reported that Tesla Shanghai Gigafactory 3 received a new $ 1.4 billion loan from Chinese Banks

A group of Chinese banks (China Construction Bank, Agricultural Bank of China, Industrial and Commercial Bank of China and Shanghai Pudong Development Bank), agreed to provide a new five-year loan at the Shanghai Gigafactory factory for the automaker.

Bankers and investors believe that Tesla is a successful company that produces an incredibly amazing product. Gigafactory 3 and made in China Model 3, in their opinion, have a great future. That is why many of them are asking to offer Tesla China for the loan.

No other car company has such an arrangement from investors and bankers, so they are forced to ask for loans themselves. Chinese bankers and investors highly value Tesla’s potential; they understand that the company has a revolutionary product that will change the world.

Tesla confirmed entered into agreements with lenders in China for a secured term loan facility of up to 9 billion yuan ($1.29 billion), according to a regulatory filing on Thursday. And 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.

So, Tesla confirmed it’s lined up 11.25 billion yuan ($1.6 billion) in financing from local banks for its Shanghai factory as it prepares to begin deliveries of China-made Model 3 sedans to local consumers.

Document:

"On December 18, 2019, a subsidiary of Tesla, Inc. (“Tesla”) entered into agreements with a syndicate of lenders in China for: (i) a secured term loan facility of up to RMB 9.0 billion and (ii) an unsecured revolving loan facility of up to RMB 2.25 billion, in each case to be used in connection with our Gigafactory Shanghai. On December 20, 2019, proceeds from one of the new facilities were used to repay in full the subsidiary’s drawn amounts on its existing bridge loan facility of up to RMB 3.5 billion, which was terminated as a result of the full repayment."

"On December 18, 2019, Tesla Shanghai entered into a Syndication Revolving Loan Agreement (the “Working Capital Facility”) with the Lenders. Under the Working Capital Facility, Tesla Shanghai may draw funds from time to time on an unsecured revolving facility of up to a total of RMB 2.25 billion (or the equivalent amount drawn in U.S. dollars). The proceeds of such loans may be used only for expenditures related to production at our Gigafactory Shanghai. The Working Capital Facility will terminate and all outstanding loans will mature on the first anniversary of the first borrowing under the loan, and the Working Capital Facility is non-recourse to Tesla or its assets."

Source: sec.gov

On December 20, 2019, Tesla Shanghai used the proceeds from the Fixed Assets Fund to fully repay all outstanding obligations under the Bridge Loan, which was then terminated.

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.

Featured image: VCG/GETTY IMAGES




Also in Tesmanian Blog

Tesla-robotaxi-ride-hailing-model
Tesla Robotaxi Ride-Hailing Model Used To Bring Healthcare Providers To Work

by Ma. Claribelle Deveza April 08, 2020 0 Comments

Tesla’s Robotaxi ride-hailing model is being used to transport healthcare providers to and from hospitals.
Read More
NASA Astronauts conducted an emergency escape drill ahead of SpaceX's first crewed flight
NASA Astronauts conducted an emergency escape drill ahead of SpaceX's first crewed flight

by Evelyn Arevalo April 07, 2020 0 Comments

"Teams rehearsed locating injured personnel on the 265-foot-level of the launch tower, loading them into the pad’s slidewire baskets and safely descending the tower."
Read More
SpaceX's original Dragon spacecraft concludes its final mission to the Space Station
SpaceX's original Dragon spacecraft concludes its final mission to the Space Station

by Evelyn Arevalo April 07, 2020 0 Comments

"Good splashdown of Dragon confirmed, completing the 20th and final resupply mission for SpaceX's first iteration of the Dragon spacecraft!"
Read More

Previous  / Next