Smartphone Maker Xiaomi Gets US$1 Bln Loan from 29 Investment Banks

(Beijing) – Chinese smartphone maker Xiaomi Inc. borrowed US$ 1 billion from 29 foreign and Hong Kong investment banks during the week of October 27-31, sources with knowledge of the matter say.

The loan was for three years, a source who was involved in the deal said. The banks said Xiaomi could borrow another US$ 500 million after it repaid this loan.

The interest rate was the London Interbank Offered Rate (Libor) plus 2.325 percentage points. Chinese companies usually get loans from foreign investment banks for 2.5 percentage points plus Libor – a benchmark rate that leading banks charge each other for short-term loans. The Libor rate on November 4 for a 12-month term was 0.5558 percent.