Huawei's new recipe to get out of the 'trap' set by the US


Huawei Investment & Holding Co. sold its first bonds with the lowest coupon of the year for a private company in China. The interest shown by investors towards this financial instrument reflects that the Chinese tech giant enjoys strong support at home while suffering the crossfire between the US and China.

These three-year yuan-denominated bonds of the parent company of Huawei Technologies were valued at 425 million dollars and were sold with 3.48% coupon, sources who preferred to remain anonymous told Bloomberg. This coupon – interest rate – is the lowest among all those that accompanied the debt financial assets issued this year by other private companies in China.
While Huawei was involved in the US trade conflict and the Asian giant, the company did not experience big problems when raising funds in your country.
"A response as strong as this reflects that investors recognize that Huawei is a high-quality private company," said Fan Wei, the deputy general manager of the fixed income department at Shenwan Hongyuan Securities. In addition, he stressed that national pride It could push Chinese investors to support the company in full commercial tensions with the US.

Huawei reported in an email that the price of its bonds obeyed the rules of the market, and attracted the attention of various institutional investors. This success can add to the fact that despite US sanctions the company's revenues have increased 24% in the first nine months of 2019. This series of factors maintains the growth of its important smartphone business.

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