Published By : 28 Jul 2017 | Published By : QYRESEARCH
Xiaomi, the China-based smartphone manufacturer, announced on Friday, July 28, 2017 that it has secured a US$1 bn loan for a term of three years in an effort to expand globally, materializing new opportunities in the retail sector. The mobile phone maker has recently entered into a syndicated loan agreement with Morgan Stanley and Deutsche Bank. According to a statement by the company, both the financiers have acted as joint coordinator for this loan while Deutsche Bank AG, Bank of China (Hong Kong) Ltd., and Wing Lung Bank have served as mandated bookrunners and lead arrangers.
In this new syndicated loan, eighteen banks across the Middle East, Europe, India, Hong Kong, China, and Taiwan have registered their participation. Previously, Xiaomi had secured a syndicated loan of US$1 bn in 2014 for a three-year term. The ‘new retail’ – the combination of offline and online retail – and globalization are the two main strategic areas, the company is focusing for further development, stated Lei Jun, the founder, chairman, and chief executive of Xiaomi. The syndicated loan will stimulate the efforts for the development of these areas, he added.
Shou Zi Chew, the CFO of Xiaomi, stated that the global syndicate of 18 top-tier banks is a solid endorsement of the company by the international capital markets. The firm claims to have a shipment volume of 23.16 mn smartphones in the Q2 2017, a rise of 70% from the Q1. Recently, the smartphone maker signed a multi-year patent agreement with the telecom giant Nokia that allows Xiaomi to acquire patented assets from Nokia.