Huawei Technologies Co. is seeking $1 billion in additional funding from a small group of lenders after a U.S. ban on Huawei equipment jeopardized the supply of critical components.
An unnamed source told Bloomberg that the largest telecommunications equipment maker is looking for an offshore loan in US or Hong Kong dollars. It is also reported that Huawei expects to repay the loan within 5-7 years.
Recall that Huawei has become one of the central players in the US-China trade war. Last week, the US government added the Chinese telecommunications giant to its blacklist of companies, which has resulted in Huawei's access to hardware and software solutions offered by US manufacturers.
The source noted that at the moment negotiations on the loan are at an early stage, so it is difficult to say whether the deal will take place. If this happens, the size of the loan and the details of the banks involved in the deal could provide additional information about Huawei's financial strength. Recall that as of December 2018, the Chinese manufacturer had unsecured bank loans in the amount of 37 billion yuan, which is approximately equal to $5,3 billion. According to a report for 2018, the company had at its disposal about 2,6 times more cash and equivalents the total amount of borrowings.
It is worth noting that just today, US President Donald Trump called Huawei "very dangerous", but did not rule out that the company could become part of a trade agreement with China.
Source: 3dnews.ru