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Huawei to issue CNY 6bn bonds

Huawei to issue CNY 6bn bonds

Mubasher: Huawei’s parent company weighs two-tranche bond issuances, with a collective value of 6 billion Chinese yuan (CNY) ($843 million), Reuters reported, citing regulatory filings.

Such issuance would be the first time for the tech behemoth to tap the onshore yuan bond market.

It is worth noting that the Chinese giant has four outstanding offshore US dollar bonds, with a collective value of $4.5 billion, the filing showed.

No dates were provided for the three-year medium-term bonds for the Chinese interbank market, while Huawei Investment Holdings’ prospectus showed that it applied for approval to raise as much as CNY 20 billion.

“With this bond issuance, Huawei plans to tap into the Chinese bond market, diversify its financing channels and improve its overall financing plan,” a Huawei spokesman was quoted by Reuters.

The amounts to be raised will be dedicated to replenish working capital and invest core business operations such as information and communications technology (ICT) infrastructure, the company said.

This came as Huawei has been subject to a trade ban from the US administration, threatening to block its access to American components and software.