Huawei issued another 3 billion yuan of surviving bonds: the interest rate is 3.45%, and the term is 5 years

IT House reported on January 17 that Huawei has released the announcement of the first phase of medium-term notes in 2023. The bond is referred to as “23 Huawei MTN001”. This will be the first medium-term note issued by Huawei in 2023.

Huawei Investment Holdings Co., Ltd. announced that the actual total issuance of “23 Huawei MTN001” is 3 billion yuan, the issuance rate is 3.45%, the term is 5 years, and the maturity date is January 16, 2028.

Previously, Ren Zhengfei had responded when Huawei first issued bonds in China that Huawei needed to choose to issue bonds at the best time to increase social understanding and trust, rather than issuing bonds at difficult times. Secondly, the cost of Huawei’s bond issuance is low, and the financing (cost) is only 4%.

Since March 2020, Huawei has issued debt financing in China many times. As of today, Huawei has 10 domestic medium-term notes in existence, totaling 32 billion yuan, which has reached 35 billion yuan so far. In addition, Huawei currently has 3 overseas US dollar bonds, totaling US$3.5 billion.

In the past three years, the total amount of Huawei’s bond issuance has been controlled at less than 10 billion yuan, and since 2022, Huawei’s bond issuance amount has increased significantly. In 2022 alone, Huawei’s bond issuance reached 15 billion yuan, which is the highest in 2021. nearly 2 times.

For the reasons and content of Huawei’s issuance of such surviving bonds, you can refer to IT House’s previous report “Why does the rich and powerful Huawei need financing?” “Huawei plans to issue 4 billion yuan in medium-term notes, and the financing scale within this year has doubled last year.”