By Dave Sebastian
Tesla Inc. (TSLA) on Thursday said its Tesla (Shanghai) Co. Ltd. subsidiary entered into loan agreements this month with lenders in China for its Gigafactory Shanghai.
The agreements comprise a secured term loan facility of up to 9 billion Chinese yuan ($1.286 billion) and an unsecured revolving loan facility of up to CNY2.25 billion, Tesla said.
Tesla said it repaid on Dec. 20 its subsidiary's drawn amounts on an existing bridge-loan facility of up to CNY3.5 billion using proceeds from one of its new facilities.
The lenders include China Construction Bank Corp., Agricultural Bank of China Shanghai Changning sub-branch, Shanghai Pudong Development Bank Co. Ltd. and the Industrial & Commercial Bank of China Ltd.
Proceeds of the loans will be used for expenditures related to the construction of and production at the plant or to repay Tesla Shanghai's outstanding debt, Tesla said.
Tesla shares, which raced this week past the symbolic threshold of $420 a share, closed 1.34% higher Thursday at $430.94.
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