Chinese telecoms vendor Huawei Technologies has signed US$1.5bn worth of dual currency debt facilities – its largest-ever overseas financing – via its subsidiary Huawei Tech Investment.
The deal is split between a US$750m equivalent term loan and a…
Chinese telecoms vendor Huawei Technologies has signed US$1.5bn worth of dual currency debt facilities – its largest-ever overseas financing – via its subsidiary Huawei Tech Investment.
The deal is split between a US$750m equivalent term loan and a US$750m equivalent revolving credit facility, which are available in both US dollars and euros with the euro tranche capped at €300m, the company said in a statement.
This is the first time Huawei has raised a dual currency syndicated facility “in line with its significantly growing global presence and, in particular, its strategic expansion plan in Europe”, the company noted.
Huawei CFO Cathy Meng further commented: “This is the largest amount of overseas loan and credit facilities Huawei has raised to date. We are pleased by the strong support received from leading international banks as this highlights the trust and confidence that the financial community has in Huawei’s sustainable growth and globalisation strategy.”
Proceeds of the transaction will go towards funding general corporate purposes and/or refinancing its existing debt.
ANZ, Citigroup, DBS Bank, HSBC, Standard Chartered and SMBC joined the transaction as mandated lead arrangers and bookrunners.
The Bank of Tokyo-Mitsubishi, RBS, Maybank, Mizuho, National Australia Bank, ING and OCBC also joined as MLAs. Mega International Commercial Bank and DNB were lead arrangers, while CTBC Bank, Fubon Financial Holding, UOB and Westpac were arrangers. Citicorp acted as facility agent.
The financing is line with Huawei’s recent comments on its growth strategy. In late April, the company announced it was no longer as interested as it used to be in the US market after years of trying to convince Washington legislators that it is not a security threat. Consequently, the vendor said it would turn its focus to other markets: “The growth of Huawei’s carrier network business is primarily from developed markets in other parts of the world,” it noted at the time.
