ZTE Issues 1.5 Billion CNY Medium Term Note

ZTE_stand_at_MWC_2013

Medium Term Notes blog update is courtesy of Telecompaper. Telecompaper is an independent research and publishing company focussed on the telecommunications industry.

ZTE completed the issue of 2015 Tranche II Medium Term Notes (Tranche II Notes) on 6 February. The Tranche II Notes were issued at par of CNY 100 each for a term of 3+N years (due upon redemption by the company pursuant to the terms of the issue) to raise CNY 1.5 billion. The issue of perpetual medium term notes with a size of not more than CNY 9 billion was approved by the company at the first extraordinary general meeting of 2014 of ZTE held on 15 October 2014. The coupon interest rate for the first 3 years for which interest is accruable is 5.69 percent per annum. Starting from the 4th year for which interest is accruable, the coupon interest rate is reset every 3 years. The Tranche II Notes were underwritten by China Development Bank Corporation as principal underwriter. Proceeds raised from the issue of the Tranche II Notes were received in full on 6 February and will be applied to provide additional working capital for the company.

About ZTE

ZTE Corporation, formerly known as Zhongxing Telecommunication Equipment Corporation, is a Chinese  multinational telecommunications equipment and systems company in Shenzhen, China. ZTE is one of the top five largest smartphone manufacturers in its home market, and in the top ten, worldwide.

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