(ATF) Xiaomi Group reportedly plans to issue 8 billion yuan ($1.13 billion) worth of onshore bonds to provide funding to help contain the spread of the coronavirus.
A source told Chinese media outlets that proceeds of the bond issue will be used to repay interest on loans in China, as well as replenish working capital and to respond to the deadly new virus, also known as Covid-19.
The Bank of China (Hong Kong) and the Industrial and Commercial Bank of China (ICBC) will be the underwriters, the source said.
Xiaomi Corporation (01810.HK) is a Chinese electronics company based in Beijing, which makes and invests in smartphones, mobile apps, laptops, bags, earphones and many other products.
Founded in 2010, it quickly rose to be one of the world’s biggest smartphone brands. Wikipedia says it was the fourth company after Apple, Samsung and Huawei to have self-developed mobile-phone chip capabilities.
Xiaomi released its first smartphone in August 2011 and became China’s largest smartphone company three years later. By mid-2018, it was the world’s fourth-largest smartphone manufacturer, and one of the most popular in the world’s two biggest markets – China and India.
Xiaomi refused to comment about its bond issue plans.
Meanwhile, the firm has cancelled new product launches in India after Prime Minister Narendra Modi announced a weeks-long national lockdown on March 24 to prevent the spread of the coronavirus.
Firms such as Google in Bangalore have also asked staff to work at home, AFP reported.