annual_report_2019_en

132 Huawei Investment & Holding Co., Ltd.

At December 31, 2018

(CNY million)

Interest rate Total

1 year

or less

1 to 5

years

Over 5

years

Intra-group

guaranteed bank

loans:

EUR variable 0.73% p.a. 779 779 – –

ZAR variable 8.88% p.a. 293 – 293 –

Nepalese Rupee fixed 10.39% p.a. 40 40 – –

CNY variable 4.41% ~ 4.90% p.a. 818 114 682 22

1,930 933 975 22

Trade receivables

financing:

USD variable 6.00% p.a. 30 5 17 8

Unsecured bank loans:

CNY variable 4.13% ~ 4.41% p.a. 16,624 2,595 13,981 48

RUB variable 10.44% p.a. 191 191 – –

HUF fixed 4.36% p.a. 95 – – 95

USD variable 3.57% ~ 4.50% p.a. 20,404 47 20,357 –

37, 314 2,833 34,338 143

Corporate bonds:

USD fixed 3.25% ~ 4.13% p.a. 30,667 – 6,836 23,831

69,941 3,771 42,166 24,004

Certain of the Group’s banking facilities are subject to compliance with covenants relating to financial ratios. In

the event of breach, the drawn down facilities would become payable on demand. The Group regularly monitors

its compliance with these covenants. As at December 31, 2019 and 2018, no covenants had been breached.

Corporate bonds

Corporate bonds were issued by the Company and its two wholly-owned subsidiaries, Proven Honour Capital

Limited (Proven Honour) and Proven Glory Capital Limited (Proven Glory). Main terms of the outstanding

corporate bonds are as follows:

Corporate bond Issuer Issue date

Principal

amount

Interest

rate per annum

Term

(million)

USD bond Proven Honour May 19, 2015 1,000 4.125% 10 years

USD bond Proven Honour May 6, 2016 2,000 4.125% 10 years

USD bond Proven Glory February 21, 2017 1,000 3.250% 5 years

USD bond Proven Glory February 21, 2017 500 4.000% 10 years

CNY medium-term note The Company October 24, 2019 3,000 3.480% 3 years

CNY medium-term note The Company November 7, 2019 3,000 3.490% 3 years

USD bonds issued by Proven Honour and Proven Glory are fully guaranteed by the Company.