The loan would be largest of its kind in the private sector in China, helping the company with its planned acquisition of seven wireless networks from its parent China Mobile Communications Corp for about US$30 billion, the paper said.
Bank of China and China Construction Bank will arrange the loan, the paper said, without naming the source of its information.
The company declined to comment on the report, saying it's still discussing purchase terms with its parent.
"No agreement has been reached yet and no financing plan has been finalized," a company spokesman who declined to be idenitified said, adding a yuan-denominated loan "is a possible means of financing given the low interest rates. It lowers the cost of capital and reduce the foreign exchange risk exposure".
China Mobile said in June it was in preliminary talks with China Mobile Communications Corp to buy the seven networks, located in the cities of Beijing, Shanghai and Tianjin, and in the provinces of Hebei, Shandong and Guangxi.
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