Visual Stories

KEY STAT | Xiaomi to raise USD 600 million via senior notes

Written by Julianna Wu Published on 

The world’s fourth-largest smartphone maker raises capital to aid the post-coronavirus recovery.

Smartphone maker and consumer electronics manufacturer Xiaomi (HKEX: 1810) will raise USD 600 million through a senior note offering, as said in the filling the company submitted to the Hong Kong Stock Exchange on Thursday.

While the capital raised is purposed mainly for general corporate operations and debt repayment, Beijing-base Xiaomi may also reallocate the use of the net proceeds “in response to unforeseen events or changing business conditions,” said the statement.

The notes, issued through its wholly-owned subsidiary Xiaomi Best Time International Limited, carries an annual interest of 3.375% and will mature in 2030.

Many Chinese businesses have sought bank loans to overcome the business disruptions from the coronavirus outbreak, according to a February report done by Reuters.

Huawei, China’s biggest smartphone maker, is also planning on issuing medium-term notes worth RMB 2 billion (USD 280 million) with an interest rate ranging between 2.8% to 3.4%, as China Securities Journal reported earlier this week.

Xiaomi experienced a disruption in production for as long as two months this year, as revealed in their latest financial report. As of late March, the company’s production capacity has recovered to 80%–90% of normal levels.

Research institute Strategy Analytics expects global smartphone shipments to drop by 10% in 2020, including a 15% drop in the Chinese market.


You might like these

  • Visual Stories

    TECH PANO | A year of ups and downs: China IPO review


    Julianna Wu

    12 Jan 2021    05:07 AM

KrASIA InsightsKrASIA Insights

  • What should have been a smooth-sailing ride for WhiteHat Jr after getting acquired by edtech giant Byju’s, it turned out to be a rocky one.


    Coding, campaign, and controversies: WhiteHat Jr’s journey from highflyer to the eye of storm

    By Moulishree Srivastava

    14 Jan 202109:33 AM

Most PopularMost Popular

See All