(Bloomberg) Chinese smartphone maker Xiaomi Corp. is set to generate some $1 billion from a fresh bond offering, as tech firms face a crackdown in its home country.
Sources close to the matter said the upcoming offering is set at 165 basis points above the comparable US Treasuries for the 10-year dollar bond, and 220 basis points for the 30-year green bond.
China’s National Development and Reform Commission has placed a quota of $1.2 billion on the bond sale, including a green bond tranche. Xiaomi can choose whether or not to use it all up.
Analysts believe the offering will be well-received after the firm was removed from the United States’ blacklist in May. Xiaomi raised almost $5 billion previously in 2020, and in March announced plans to enter the electric car industry.
China has clamped down and has set its sights on stricter regulation on the country’s biggest tech firms.
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