China Development Bank Provides ZTE US$15 Billion Credit Line
SHENZHEN, Mar. 20 /PRNewswire-AsiaNet/ --
Credit Facility Allows ZTE to Expand Global Reach and Introduce New Technologies
ZTE Corporation ("ZTE") (H share stock code: 0763.HK / A share stock code:
000063.SZ), a leading global provider of telecommunications equipment and network
solutions, today announced that it has entered into a strategic partnership with
China Development Bank by signing a "Development of Financial Cooperation
Agreement". This partnership further strengthens the solid relationship the two
organizations have previously developed.
Under the agreement, both parties will closely work together to establish an
investment and financing platform, including expansion to overseas markets.
According to a 5-year cooperation framework agreement, China Development Bank
will provide ZTE a US$15 billion credit line, including ZTE's overseas project
financing and ZTE's credit limits. The two companies are currently in discussion
to develop specific terms and procedures on financing project and how to
effectively execute the business cooperation.
Today, global and leading telecom operators are under enormous pressure to
develop next-generation telecom technologies, such as 3G, to meet market demands.
However, in view of the current global financial crisis, the majority of
mainstream financing agencies based in Europe and the U.S. are trying to find
ways to address issues such as inadequate liquidity and credit crunch. This is
where China Development Bank has an advantage by possessing a healthy balance
sheet as well as strong financing and credit ability, and sees positive future
prospects for the global telecom industry.
China Development Bank pledges to help ZTE in further strengthening and
upgrading its position in the global telecoms industry, hence facilitating ZTE's
entry among the ranks of the world's tier-one telecom operators. China
Development Bank is the fifth largest commercial bank in China. In 2008, its
total assets were valued at 2,890 billion RMB with non-performing loan ratio
within 1%. The bank also holds exceptional advantage in the area of export
credit.
ZTE believes that by strengthening its cooperation with China Development
Bank during these challenging times, it will help the company to further partner
with global telecom carriers. With a strong financial capability, ZTE will be
able to take advantage of potential business opportunities through a combined
effort of expanding market reach and rolling out new technologies. This further
helps the company to enhance its market competitiveness and ultimately achieve a
win-win situation.
Despite the global economic crunch, ZTE has been upgrading its position in
the industry steadily by adopting an aggressive and prudent marketing strategy.
Yesterday, ZTE announced a revenue of approximately RMB 44,293 million (US$6,388
million) in 2008, representing an increase of 27.37% over 2007. In the 3G tender
bids offered by China's three largest telecom operators, ZTE obtained about 30%
of the total local markets to deploy about 660,000 3G carrier frequency,
positioning itself as the clear leader in China's 3G industry.
Media Contacts:
Margrete Ma
ZTE Corporation
Tel: +86-755-2677-5207
Email: ma.gaili@zte.com.cn
Romy T. Arambulo/ Ada Ho
Edelman PR
Tel: +852-2837-4727 x2837/4747
Email: romy.arambulo@edelman.com
ada.ho@edelman.com
SOURCE ZTE Corporation
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