Tesla Inc has entered into agreements with lenders in China for a secured term loan facility of about 9 billion yuan ($1.29 billion), as per a regulatory filing on Thursday.
The electric automaker stated it has signed agreements for an unsecured revolving loan facility as well of up to 2.25 billion yuan ($322 million), adding that both the loans are designated for its Shanghai auto plant.
According to the filing, the lenders are China Construction Bank, Agricultural Bank of China, Shanghai Pudong Development Bank and Industrial and Commercial Bank of China.
Apart from construction and production at the Shanghai auto plant, the loan may also be used to repay the 3.5 billion yuan ($501 million) debt which has to be repaid on March 4 next year.
The factory, which is Tesla’s first car production site outside the United States, would help the automaker to increase sales in the world’s biggest auto market and prevent higher import tariffs imposed on U.S.-made cars.
It was reported previously this week that Tesla and a group of China banks had agreed to a new 10 billion yuan ($1.4 billion), five-year loan facility for the automaker’s Shanghai auto plant, mentioning sources knowledgeable with the matter.
