Tesla Shanghai entered into a revolving loan agreement with a group of Chinese banks.

According to a related 8-K filing, Tesla entered into a fixed asset syndication loan agreement and a supplemental agreement with China Construction Bank, China (Shanghai) Pilot Free Trade Zone Special Area Branch, Agricultural Bank of China Shanghai Changning Sub-branch, Shanghai Pudong Development Bank Shanghai Branch, and Industrial and Commercial Bank of China Limited, China (Shanghai) Pilot Free Trade Zone Special Area Branch, as lenders.

Under the fixed asset facility, Tesla Shanghai may for a period of three years draw funds from time to time on a secured term facility of up to a total of RMB9 billion ($1.28 billion) or the equivalent amount drawn in U.S. dollars. The proceeds of these loans may be used only for expenditures related to the construction of and production at Tesla’s Gigafactory Shanghai or to repay certain outstanding debt of Tesla Shanghai.

The group also closed a separate RMB2.25 billion ($314 million) unsecured revolving credit facility.

On December 20, 2019, Tesla Shanghai used proceeds from the fixed asset facility to repay in full all of the then-outstanding obligations under its bridge loan, which was then terminated.