Advertisement
Australia markets closed
  • ALL ORDS

    8,153.70
    +80.10 (+0.99%)
     
  • ASX 200

    7,896.90
    +77.30 (+0.99%)
     
  • AUD/USD

    0.6519
    -0.0017 (-0.26%)
     
  • OIL

    83.11
    +1.76 (+2.16%)
     
  • GOLD

    2,254.80
    +42.10 (+1.90%)
     
  • Bitcoin AUD

    108,402.20
    +2,272.38 (+2.14%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • AUD/EUR

    0.6038
    +0.0007 (+0.12%)
     
  • AUD/NZD

    1.0902
    +0.0022 (+0.20%)
     
  • NZX 50

    12,105.29
    +94.63 (+0.79%)
     
  • NASDAQ

    18,254.69
    -26.15 (-0.14%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • Dow Jones

    39,807.37
    +47.29 (+0.12%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     

Huawei Defies Trade War Angst with Strong Yuan Bond Debut

(Bloomberg) -- Huawei Investment & Holding Co. sold its first bond in China at the year’s lowest coupon for a Chinese private firm’s note with the same tenor, reflecting strong domestic support for the company caught in the country’s trade crossfire with the U.S.

The parent of tech giant Huawei Technologies Co. priced a 3 billion yuan ($425 million) three-year bond at 3.48% on Wednesday, according to people familiar with the matter who aren’t authorized to speak publicly and asked not to be identified. It’s the lowest coupon for three-year domestic bonds issued by privately-owned companies this year, Bloomberg data show.

Although the world’s largest provider of networking gear has found itself at the centre of China’s conflict with the U.S. over trade and key technologies, it hasn’t faced much trouble raising funds at home. In July, Huawei was planning to raise a $1.5 billion equivalent loan from Chinese lenders, the first time it tapped the offshore market without an international bank.

“The strong response reflects investors’ recognition of Huawei as a top-quality private firm and highlights the scarcity of credit such as Huawei in the domestic bond market,” said Fan Wei, vice general manager of the fixed income department at Shenwan Hongyuan Securities Co.

ADVERTISEMENT

National pride may also have spurred buyers to show their support for the firm amid the rising trade tensions, Fan said, adding that the 3.48% coupon is one of the lowest ever achieved by privately owned firms on record.

Huawei said in an email that the issuance cost was aligned with market standards and drew extensive attention, attracting diverse institutional investors. The pricing also beat that of State Power Investment Corp., which issued a 2.4 billion yuan three-year note at 3.55% earlier this week.

Huawei Technologies this month reported a 24% jump in revenue in the first nine months of the year, defying U.S. sanctions to sustain growth in its pivotal smartphone business.

--With assistance from Sirui Ma and Gao Yuan.

To contact Bloomberg News staff for this story: Ina Zhou in Hong Kong at hzhou179@bloomberg.net;Xize Kang in Beijing at xkang7@bloomberg.net;Heng Xie in Beijing at hxie34@bloomberg.net

To contact the editors responsible for this story: Neha D'silva at ndsilva1@bloomberg.net, Chan Tien Hin, Magdalene Fung

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.