Xiaomi Seeks A $1 Billion Loan At The Lowest Interest Rate Ever

According to Bloomberg News, two years have not seen. Xiaomi recently returned to the loan market, plans to refinance 1 billion US dollars. According to people familiar with the matter, the Chinese smartphone maker is in early contact with lenders to negotiate a five-year repayment of a syndicated loan. With a low interest rate as low as the London Interbank Offered Rate (Libor) plus more than 150 base point. According to Bloomberg’s compiled data, this may mark Xiaomi’s cheapest. And longest-term loan in the loan market.

With a 13% drop in trading volume this year, the loan market is highly liquid. Giving some large borrowers the opportunity to obtain loans at a lower cost. Last month, Chinese social media giant Tencent also received the largest and lowest cost dollar financing in the company’s history.

In view of the recent winds in Xiaomi’s revenue, the company once again considered financing. Earlier this month, Xiaomi announced plans to spend about 1.5 billion US dollars to buy back company shares.

A person familiar with the name of the person said that the latest loan was debited by Xiaomi Best Time International and guaranteed by Xiaomi. The last time Xiaomi financed the loan market was in 2017. The loan scale was comparable to this one, but the term was three years.

The highest comprehensive income of this loan is 250 to 260 basis points. The original interest rate is 215 basis points over Libor. In August last year, Xiaomi with the lender agreed to reduce the interest rate by 60 basis points to 155 basis points over Libor.

Also Read: Huawei Built A Lab In London, Opposite The Google

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