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Tesla gets $1.29 billion loan from Chinese banks in the Shanghai factory,

FILE PHOTO: A China-made-Tesla Model 3 electric vehicle will be given prior to the Guangzhou auto show in Guangzhou, Guangdong province, China, 21 November, 2019 at the latest. REUTERS/Yilei Sun/File Photo

(Reuters) – Tesla Inc. (TSLA.(O) contracts entered into by sellers in China, with a secured loan facility of up to € 9 billion yuan ($1.29 billion), according to a regulatory filing on Thursday.

The electric-car maker, said it has signed an agreement for an unsecured revolving credit facility of up to 2.25 billion yuan, and add the fact that both the loans are with the Shanghai automotive industrial plant. (a little bit.m/2tU35dI)

China Construction Bank Corp. (0939.HK) (601939.SS), Agricultural Bank of China (1288.HK) (601288.SS), Shanghai Pudong Development Bank (600000.SS) and Industrial and Commercial Bank of China (1398.HK) (601398.SS), the lenders, according to the filing.

In addition, the design and the production at the Shanghai factory, so the loan can also be used for the repayment of the 3.5 billion yuan of debt that should be repaid on the 4th of March next year.

The plant, which was its first production car, the site is outside of the United States of america, is at the heart of its ambitions to boost sales in the world’s biggest auto market, to avoid the higher import tariffs imposed on AMERICAN cars.

Reuters reported earlier this week that Tesla and China’s banks have agreed to a new 10-billion-yuan, five-year credit facility for the automaker, the Shanghai automotive plant, citing sources familiar with the matter.

Report by Ayanti Berra in Bengaluru; Editing by Shounak Dasgupta

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