May. 14, 2012 (China Knowledge) - Huawei Technologies Co Ltd, China's No. 1 telecom equipment maker, intends to issue RMB 1 billion worth of offshore RMB-denominated bonds in Hong Kong
, or dim sum bonds, via a private placement, said a person familiar with the matter.
Coupon rate of the three-year bonds will be 5.3%, the high end of the issuer's indicative range between 5% and 5.3%.
The person also noted that Bank of China (BOC)<601988
>, the largest foreign exchange lender in China, Singapore-based DBS Bank, HSBC Holdings PLC<0005
><HBC>, ICBC Asia and Standard Chartered Bank will handle the deal.
The bond issue will be conducted by an overseas subsidiary of Huawei Technologies, said the person, adding that parts of the proceeds will be used to repay bank loans.
The telecom equipment maker expects revenue from point-of-sale terminal business to increase from US$6.8 billion last year to US$9 billion in 2012, said Yu Chengdong, head of Huawei consumer terminal products.