ZTE Renews $20 Billion Financing Deal with Chinese Bank
Published on: 4th Dec 2012
Note -- this news article is more than a year old.
By: Ian Mansfield
China's ZTE says that it has renewed a US$20 billion line of credit from the state controlled China Development Bank (CDB) which extends a previous agreement announced back in 2009.
The principal terms of the Agreement include the provision by CDB of a US$20 billion facility for cooperation, comprising financing facilities for the Company's overseas projects and credit facilities for the company.
The overseas project financing facilities shall be applied towards meeting the funding requirements of overseas customers in the purchase of ZTE's equipment and related technical services.
ZTE said that the funding agreement will last for five years.
However, the availability of such large sums of bank credit to support sales in vendor financed agreements was one of the complaints leveled against Huawei and ZTE by US and European investigations.