Huawei in talk with banks to Raise $2 Billion

Huawei is in talk with many international banks, the company plans to raise about US$2 billion. Huawei hopes to raise the money through loans and bond sales outside China. Huawei’s intention to raise funds comes as the Shenzhen-based company comes under increased scrutiny from the US and countries in Europe over security concerns related to its telecommunications equipment, especially now that Huawei has branded itself the front-runner when it comes to providing 5G gear.

At this time nothing is clear that which bank standing with Huawei for now. While Huawei has worked with international banks for many years, the U.S. government’s attacks on Huawei could make some lenders reluctant to get too involved because of the potential risk of being associated with the company.

Huawei officially explained the financing, saying that ” Huawei has always insisted on optimizing the capital structure through reasonable financing layout to ensure the company’s financial stability . The domestic bond market has developed rapidly and currently has the second largest market capacity in the world. Bond financing has become important One of the financing channels. The company will open the domestic bond market through domestic bond issuance, which will further enrich the financing channels and optimize the overall financing layout. “