ZTE grabs another $10b to back vendor finance deals

Dylan Bushell-Embling
25 May 2009
00:00

ZTE has arranged a $10 billion credit line from a Chinese bank to help customers purchase its equipment.

The new credit facility, from the Export-Import Bank of China (Exim Bank), comes two months after the vendor secured a $15 billion credit line from the China Development Bank.

Under the three-year agreement, China Exim Bank will give priority to funding ZTE\'s overseas projects, the Shenzhen-based firm said.

The huge loan deal is one more sign that while global equipment suppliers are battling with the recession, ZTE and local rival Huawei are primed for growth, backed by Chinese banks.

ZTE posted a $249 million profit last year after hiking sales 27%. Huawei has forecast that it will sign contracts worth $30 billion in 2009, up from $23 billion last year.

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