Xiaomi raises $1.2bn via debt issuance
By Caoimhe Toman
Date: Thursday 08 Jul 2021
(Sharecast News) - Chinese tech giant Xiaomi is set to raise around $1.2bn by selling debt even as authorities in Beijing crack down on the country's technology giants.
Xiaomi will issue $800m worth of bonds due in 2031 with a coupon of 2.875% per year. The proceeds will be used for "general corporate purposes," according to a regulatory filing.
It will also issue $400m of green bonds that will support environmental projects with a 4.1% coupon per year.
Xiaomi aims to continue to expand globally and is looking at breaking into new areas like electric vehicles. In March, Xiaomi said it would invest $10bn over the next decade in its new electric car business.
The funds could be put towards those initiatives.
Xiaomi's debt issuance comes as the Chinese government intensifies the scrutiny of the tech sector. Last year, the government introduced new antitrust and data protection regulations for fintech.
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