Huawei seeks support from Chinese banks as many international banks cut ties

HONG KONG: Embattled Chinese telecom giant Huawei Technologies is relying on Chinese banks to support an offshore syndicated loan of up to US $1.5 billion, as it fights damaging US sanctions that are curbing its ability to borrow from international banks.

Huawei, the world’s largest maker of telecommunications network equipment and the number three smartphone supplier, is seeking five and seven-year funding, two weeks after it was added to a US Commerce Department blacklist that bans it from buying components and technology from US firms without government approval.

The sanctions are already hitting Huawei’s business and 1,200 suppliers and the company’s access to offshore financing is narrowing as many international banks are no longer able to lend to the former top-tier borrower.