Chinese telecoms giant Huawei speeds up bond sales to help fund expansion into software, services
- Company will issue 3 billion yuan (US$470 million) of short-term debt next week, a month after it sold 3 billion yuan in China’s interbank market
- Huawei is reinventing itself, morphing from a hardware-centric model to a combination of hardware, software, and services
According to a filing at the Shanghai Clearing House, Huawei plans to issue 180-day notes next Monday, which will increase the company’s total debt financing in 2022 to 17 billion yuan from 11 billion yuan last year and 9 billion yuan in 2020.
The proceeds will support business development and “implementation of critical strategies”, the company said. The funds will also be used to replenish the working capital of Huawei and its subsidiaries.
Huawei is not a listed company, but according to its financial results it was sitting on nearly 200 billion yuan of cash as of last September. While revenue dropped 29 per cent in 2021, its profit increased 76 per cent to 113.7 billion yuan (US$17.8 billion) last year thanks to one-off returns from selling business units.
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Hero’s welcome for Meng Wanzhou at Huawei offices in China after extradition battle and quarantine
