Chinese telecom giant Huawei Technologies Co is seeking $1 billion from a small group of lenders in its first major funding test after being put on the US Commerce Department’s blacklist, which could cut the company from critical suppliers, reported Caixin.
Huawei is seeking an offshore loan in either US or Hong Kong dollars, said Caixin sources. The company is targeting maturities of five and seven years.
Huawei’s latest fundraising attempt comes about four months after it obtained a RMB 14 billion loan from five Chinese banks. In September, the company raised $1.5 billion offshore from a group of 10 mostly international banks.
The company’s talks with lenders are still at an early stage, but if the deal is successful 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, said Caixin.