Huawei Seeks $ 1 Billion in First Big Funding Test Ban
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 identify 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. about trade and key technologies. The Trump administration jolted global investors last week by adding the Shenzhen-based company to blacklist that could potentially be accessed from 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 is no guarantee a deal will come together. If it does, the loan's pricing ̵
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 bank. In September, the company raised $ 1.5 billion offshore from a group of 10 mostly international banks.
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