Huawei said to be in talks with banks to raise US$2 billion despite being on US blacklist

Chinese telecommunications gear giant Huawei Technologies is in talks with banks to raise about US$2 billion, even as the company remains on a US trade blacklist that has barred it from doing business with American companies.

Huawei hopes to raise the money through loans and bond sales outside China, according to a report in The Information, which cited people familiar with the matter. How much Huawei will end up raising and how many banks will be part of the deal remains unclear.

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.

Washington believes that Huawei equipment could be used as a conduit for Chinese intelligence activities, even though the company categorically denies these accusations and insists it would never spy for the Chinese government.

The company has for years worked with many international banks, but lenders could be reluctant to deal with it to reduce potential risks, especially following the recent US campaign against Huawei.

Huawei declined to comment.