Huawei seeking to raise a $1.5bn-equivalent loan

Chinese smartphone maker in talks with international and Chinese lenders

Funds raised will be used for general corporate purposes and working capital, Huawei said. Photograph: Fred Dufour/AFP/Getty

Funds raised will be used for general corporate purposes and working capital, Huawei said. Photograph: Fred Dufour/AFP/Getty

 

Huawei is seeking to raise a $1.5 billion-equivalent loan, shortly after sealing a similar-sized financing in July, according to sources.

The Chinese smartphone maker is in talks with international and Chinese lenders for the facility, with Huawei Investment and Holding providing a letter of comfort, said the sources, who are not authorised to speak publicly and asked not to be identified.

Funds raised will be used for general corporate purposes and working capital, they said. Huawei declined to comment.

The provider of networking gear has been at the centre of China’s conflict with the US over trade and key technologies. Yet it has been able to line up funding in the loan market with $3.5 billion (€3.17 billion) raised in less than a year, data compiled by Bloomberg show.

In July, Huawei raised 11.7 billion Hong Kong dollars (€1.36 billion) from five Chinese banks, which marked its first offshore funding in the loan market without the help of international banks.

The Shenzhen-based company has also signed a 14 billion yuan (€1.8 billion) onshore loan in December 2018.

The latest round of financing, denominated in Hong Kong dollars, US dollars or euro, will be borrowed via Huawei Technologies Cooperatief Ua, said the people. – Agencies