Huawei, China’s largest telecommunication equipment company, has decided to raise 4 billion yuan by issuing bonds in the Chinese financial market. The amount raised will be used as funds for operating headquarters and subsidiaries.
China’s Global Times and others reported on the 9th that Huawei issued 4 billion yuan in mid-term bonds on the 6th. Interest rates are 2.7 to 3.3%, and the repayment period is 3 years.
It is the first time this year that Huawei has generated corporate bonds and the first time in 10 months since March last year. Since the U.S. sanctions began in earnest, Huawei has raised 38 billion yuan by issuing bonds 10 times in the mainland market since October 2019.
Until now, the market has responded that it is strange about Huawei’s bond issuance. This is because considering Huawei’s abundant financial power, it will not be insufficient at all.
Huawei’s cashable assets for the three years from 2018 to 2020 are known to be 184.1 billion yuan, 251 billion yuan, and 1973 billion yuan.
Chinese experts say it is difficult to say that Huawei has faced serious financial difficulties regarding the issuance of bonds.
However, Huawei’s sales reportedly plunged 28.9% year-on-year last year. It was analyzed that this was due to the U.S. government’s sanctions, lack of semiconductor supply, and sluggish global demand for smartphones.
