Electric vehicle maker Tesla has secured a $1.29 billion loan from Chinese banks for its Shanghai factory.
According to a regulatory filing, the company has entered into agreements with Chinese lenders for a secured term loan facility of up to 9 billion yuan, which is $1.29 billion. The filing lists China Construction Bank Corp, Agricultural Bank of China, Shanghai Pudong Development Bank and Industrial and Commercial Bank of China as the lenders.
Tesla said it additionally signed agreements for an unsecured revolving loan facility of up to 2.25 billion yuan. Both the loans will be used for the company’s Shanghai car plant.
The loan may also be used to repay the 3.5 billion yuan debt due to be repaid on March 4th of next year.
The Shanghai factory is the first car manufacturing site outside of the U.S. for the company.
Reuters had reported earlier in the week that Tesla and a group of China banks had agreed to a new 10 billion yuan, five-year loan facility for the plant.
Disclaimer: We have no position in Microsoft Corporation (NASDAQ: MSFT) and have not been compensated for this article.