Huawei to Issue First of Two Bonds Worth 3 Billion Yuan Each
Huawei will offer its first interbank bond on Oct. 22 and will use the funds to improve capital structure and complement its workforce.
Huawei Technologies Co. Ltd. will issue a 3 billion yuan interbank bond next week to help support its working capital and subsidiaries.
The largest smartphone maker in China said the bond will have a three-year term beginning Oct. 22, marking Huawei's first domestic offering, as reported by Reuters citing a filing with the Shanghai Clearing House. Following the issuance, the company plans to offer another 3 billion yuan bond, the date for which has not been disclosed.
Huawei aims to use the capital to diversify its financing channels, advance its capital structure and ensure financial stability, as well as for working capital, according to news agency Caixin Global.
Serving as the lead underwriter on the offering is the Industrial and Commercial Bank of China, Reuters said.
The offering was first announced last month when Huawei noted the same terms on two tranches of bonds in regulatory filings.
On Wednesday, Huawei reported its financials for the third quarter. It said revenue reached $86.3 billion, up 24% year-over-year, and net profit margin was 8.7%. The company attributed improved results to increased smartphone shipments, saying it sold 185 million units, up 26% from a year ago. In addition, this year, Huawei deployed its 5G network, featuring innovative solutions such as smart & simplified transport networks and the launch of 5G Super Uplink. Huawei reported it was processing more than 60 commercial contracts to deliver 5G technology.
As of June, Huawei controlled 36% of the smartphone market in China.