Caixin
Caixin Global – Latest China News & Headlines

Home >

ABOUT US

CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

TRENDING
Geely-Backed Meizu Stops New Phone Development, Turns to AI and Auto Tech
Noetix Robotics Raises Nearly 1 Billion Yuan After Spring Festival Gala Skit
Win in GoPro Dispute Keeps U.S. Market Mostly Open to Chinese Camera-Maker
LATEST
Win in GoPro Dispute Keeps U.S. Market Mostly Open to Chinese Camera-Maker
Noetix Robotics Raises Nearly 1 Billion Yuan After Spring Festival Gala Skit
Geely-Backed Meizu Stops New Phone Development, Turns to AI and Auto Tech
In Profile: How Morris Chang Built TSMC Into a Chipmaking Colossus
Baidu Profit Plunges 42% as AI Push Erodes Core Ad Business
Robotics Startup X Square Secures Fresh Funding Amid Valuation Surge
Fatal Xiaomi EV Crash Raises Questions Over Door-Handle Safety
DJI Challenges U.S. Drone Ban in Federal Appeals Court
China’s AI² Robotics Raises Fresh Funds at Over 10 Billion Yuan Valuation
China’s Tech Giants Wage Lunar New Year Subsidy War to Win AI Users
ByteDance’s Doubao Dominates Spring Festival Gala With 1.9 Billion AI Interactions
At China’s Spring Festival Gala, Robotics Becomes Big Business
Pentagon Retracts Chinese Military Companies List Twice in Two Days
Alibaba Unveils Qwen3.5-Plus, Undercutting Gemini 3 Pro on Cost
Pentagon Blacklists Alibaba, Baidu and BYD Over Alleged Military Ties
ByteDance Unveils Doubao 2.0 AI Model to Tackle Complex Tasks
Hollywood Isn’t a Fan of ByteDance’s New AI Video Tool
China Plans to Make Liability Insurance Mandatory for Drones by 2027
Dutch Court Orders Probe Into Nexperia, Keeps Wingtech Frozen Out
SMIC Revenue Rises as Profit Slips on Expansion Costs
Huawei Seeks $1 Billion in First Big Funding Test After U.S. Ban

By Bloomberg / May 25, 2019 12:14 AM / Business & Tech

Photo: VCG

Photo: VCG

Chinese telecom giant Huawei Technologies Co. is seeking about $1 billion from a small group of lenders, its first major funding test after getting hit with U.S. curbs that threaten to cut off access to critical suppliers.

The world’s largest provider of networking gear is seeking an offshore loan in either U.S. or Hong Kong dollars, said people familiar with the matter, who asked not to be identified discussing private information. The company is targeting maturities of five and seven years, the people said.

Huawei has become a central player in the country’s conflicts with the U.S. over trade and key technologies. The Trump administration jolted global investors last week by adding the Shenzhen-based company to a blacklist that could potentially hobble its access to parts and software from American suppliers. Huawei’s dollar-denominated bonds tumbled to three-month lows on the news, and one of Asia’s top-performing debt managers offloaded his holdings.

The company’s talks with lenders are still at an early stage, and there’s no guarantee a deal will come together. If it does, the loan’s pricing — as well as the identities of the participating banks — could provide further clues on the market’s perception of Huawei’s financial strength. The company had 37 billion yuan ($5.3 billion) of unsecured bank loans as of December, of which 2.8 billion yuan were due in one year or less, according to its 2018 annual report. It had cash and cash equivalents of about 2.6 times total borrowing.

Huawei didn’t immediately reply to a request for comment.

Huawei’s latest fundraising attempt comes about four months after it obtained a 14 billion yuan loan from five Chinese banks. In September, the company raised $1.5 billion offshore from a group of 10 mostly international banks.

Related: What Huawei Founder Told the Chinese Media This Week


Share this article
Open WeChat and scan the QR code