April 17 (Basis Point) - Huawei Technologies Co Ltd is
talking to banks for a loan of at least US$500 million, sources
According to sources, the new money deal could have a tenor
of at least five years. Price talk is at sub-200bp, sources
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)