7:15 AM Line of credit matches its expected annual contract sales

September 24, 2009

1 Min Read
Huawei's Lucky Number: 30B

7:15 AM -- What is it with Huawei Technologies Co. Ltd. and the number 30 billion?

The company recently announced it is expecting the value of contract sales (not the same as revenues) in 2009 to total $30 billion. (See BBWF: Huawei's Big Year.)

And now, according to this report from Marbridge Consulting, Huawei has just struck a deal to extend its line of credit with the China Development Bank to $30 billion, a significant advance from the $10 billion loan facility agreed in 2004. (See Huawei Wins $10B Credit Deal.)

The same bank arranged a $15 billion line of credit with Huawei's local rival ZTE Corp. (Shenzhen: 000063; Hong Kong: 0763) in March this year. (See ZTE Secures $15B, Highlights R&D.)

ZTE then added to that facility with a further $10 billion credit agreement with the Export-Import Bank of China (China Exim Bank). (See ZTE Bags Another $10B in Credit.)

That gives the two Chinese vendors, between them, $55 billion in credit facilities for international expansion and business development. Scared yet?

Maybe we'll find out how the duo intend to deploy those available funds at the upcoming ITU Telecom World 2009, where Huawei and ZTE are among the handful of telecom big hitters setting up camp on the show floor.

Follow our coverage of that event at our ITU Telecom World 2009 microsite.

— Ray Le Maistre, International News Editor, Light Reading

Read more about:

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like