Huawei plans to raise $1.5b loan from Chinese banks

REUTERS/Hannibal Hanschke/Files

Huawei Technologies Co. plans to raise the equivalent of $1.5 billion from a group of Chinese lenders, people familiar with the matter said, the company’s first major debt financing since U.S. authorities restricted its access to key suppliers in May.

It would also be the first time on record that Huawei has tapped the offshore syndicated loan market without the help of at least one international bank, according to data compiled by Bloomberg. The Shenzhen-based company is close to wrapping up the Hong Kong dollar-denominated loan, though final signoffs are still pending and details could change, the people said.

The world’s largest provider of networking gear has became a central player in China’s conflicts with the U.S. over trade and key technologies, and investors have been watching the company closely in recent weeks for clues about its access to funding. While Donald Trump said last month that he would ease some curbs on Huawei, the tech giant remains on a U.S. blacklist and will likely continue to face significant restraints on its access to American suppliers.

Some foreign banks could be abstaining from making new loans to Huawei because of ongoing uncertainty surrounding the U.S. curbs, according to Cindy Lam, an analyst at Bloomberg Intelligence in Hong Kong. At the same time, if Huawei can secure funding from Chinese lenders, it won’t need to tap foreign ones, she said.

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

The all-in pricing on offer for the five-year tranche on Huawei’s loan is 130 basis points over the Hong Kong interbank offered rate and 160 basis points for the seven-year tranche, people familiar with the matter said, asking not to be identified because they aren’t authorized to speak publicly. The five-year loan pricing is higher than a similar tenor facility in September.

Bloomberg

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.