Huawei taps domestic lenders for $1.5 billion loan
Jul 10, 2019
Huawei plans to raise $1.5 billion from a group of domestic lenders, an anonymous source familiar with the matter told Bloomberg. The move will mark the Chinese telecom giant’s first offshore syndicated loan secured without any help from overseas banks.
Why it matters: The deal is the Shenzhen-based firm’s first financing since the Trump administration cuts off its access to US suppliers in May.
- Despite the US and China considering a return to the negotiating table following the G20 summit, Huawei remains on the US entity list.
- The company slashed its sales expectations by around $25 billion in June.
Details: The Hong Kong dollar-denominated deal is almost ready but details could still change, Bloomberg reported.
- The five-year loan is reportedly 130 basis points over the Hong Kong interbank offered rate and 160 basis points for the seven-year tranche.