Huawei issues new $443 million of surviving bonds

Huawei has announced the first phase of medium-term notes in 2023. The bonds is referred to as “23 Huawei MTN001” and it will be the first medium-term note issued by Huawei in 2023. Huawei Investment announced that the actual total issuance of “23 Huawei MTN001” is 3 billion yuan ($443 million USD) worth of bonds, the issuance rate is 3.45%, the term is 5 years, and the maturity date is January 16, 2028.

Huawei founder, Ren Zhengfei responded when Huawei first issued bonds in China. He mentioned that Huawei needs to choose to issue bonds at the best time to increase social understanding and trust, rather than issuing bonds at difficult times. Secondly, the cost of Huawei’s bond issuance is low, and the financing (cost) is only 4%.

Since March 2020, Huawei has issued debt financing in China many times. As of today, Huawei has 10 domestic medium-term notes in existence, totaling 32 billion yuan, which has reached 35 billion yuan so far. In addition, Huawei currently has 3 overseas US dollar bonds with a total of $3.5 billion.

In the past three years, the amount of Huawei’s bond issuance has been controlled below 10 billion yuan, and since 2022, the amount of Huawei’s bond issuance has increased significantly. In 2022 alone, Huawei’s bond issuance reached 15 billion yuan, which is the highest in 2021. nearly 2 times.

(via – ithome)