Thursday, March 19, 2009

ZTE Secures US$15 Billion Credit Line from China Development Bank

China Development Bank will provide ZTE a US$15 billion credit line, including ZTE's overseas project financing and ZTE's credit limits, under a 5-year agreement announced by the companies. The two companies are currently in discussion to develop specific terms and procedures on financing project and how to effectively execute the business cooperation.

ZTE noted that in view of the current global financial crisis, majority of mainstream financing agencies based in Europe and the U.S. are trying to find ways how to address issues such as inadequate liquidity and credit crunch. In contrast, China Development Bank claims a healthy balance sheet as well as strong financing and credit worthiness.

China Development Bank is the fifth largest commercial bank in China. In 2008, its total asset was valued at 2,890 billion RMB with non-performing loan ratio within 1%. The bank also holds exceptional advantage in the area of export credit.

ZTE generated 2008 revenue of approximately RMB 44,293 million (US$6,388 million), representing an increase of 27.37% over 2007. In the 3G tender bids offered by China's three largest telecom operators, ZTE obtained about 30% of the total local markets to deploy about 660,000 3G carrier frequency, positioning itself as the clear leader in China's 3G industry.

See also