World's fifth-largest telecom equipment maker says it has signed a deal to loan US$20 billion from government-backed China Development Bank to finance its overseas expansion.
"The principal terms of the agreement include the provision by CDB of a USD$20 billion facility for cooperation, comprising financing facilities for the company's overseas projects and credit facilities," ZTE told Hong Kong stock exchange in the evening on Tuesday.
The latest "Development Financing Strategic Cooperation Agreement" signed between the two parties, which is expected to roll out in 2013 and over five years, undertakes the previous one inked in 2009, said the statement. In March 2009, ZTE announced China Development Bank would provide a US$15 billion credit line to finance its overseas project as well as credit limits.
The government-backed bank, which owns total assets of nearly US$1 trillion, is known for providing big loans to Chinese state-owned companies. In recent years, the bank has also started making private loans in the region and has lent money to Chinese e-commerce giant, Alibaba Group.
ZTE is a leading global provider of telecommunications equipment and network products, with a network of operators across 140 countries in the world. The company is listed on both the Hong Kong and Shenzhen stock exchanges, and is the largest listed telecoms equipment company in China.