BASIS POINT-Huawei in talks for at least US$500m loan

Wed Apr 17, 2013 8:18am EDT

April 17 (Basis Point) - Huawei Technologies Co Ltd is talking to banks for a loan of at least US$500 million, sources said.

According to sources, the new money deal could have a tenor of at least five years. Price talk is at sub-200bp, sources said.

The borrower is yet to decide on a club or syndicated deal.

In August 2011, Huawei sealed a US$1.2 billion five-year loan which paid a top-level all-in of 165 bp via a margin of 140 bp over Libor.

That facility, split into a US$700 million tranche borrowed via Huawei Tech Investment Co Ltd and a US$500 million tranche via Huawei International Pte Ltd, had a letter of comfort from the parent company.

Bank of Tokyo-Mitsubishi UFJ, Credit Agricole CIB, Citigroup, DBS Bank, HSBC, Standard Chartered Bank, Sumitomo Mitsui Banking Corp and Westpac Banking Corp were the mandated lead arrangers and bookrunners on the 2011 deal.

Reuters reported in February that Huawei sold 32 million smartphones in 2012, up 60 percent from 2011. The company was third in smartphone sales in the final quarter of 2012, according to research firm IDC, with ZTE in fifth place and Sony sandwiched in between. Samsung and Apple, however, were far in front, together accounting for half of the market. (Reporting By Sandra Tsui; Editing bu Jaqueline Poh)

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