With Beijing tightening its oversight on some of China’s biggest tech firms, Xiaomi has made a bid to market a dollar bond deal to international investors. The tech firm is looking to raise $1 billion from this effort, which would include a rare green bond tranche.
Prior to beginning its efforts to secure a dollar bond deal, Xiaomi received a bond sale quota from China’s National Development and Reform Commission to the value of $1.2 billion. The decision on whether or not to use the entire quota remains at Xiaomi’s discretion.
The smartphone maker revealed that eligible projects for the proceeds of its green bond include clean transportation and renewable energy. So far, Xiaomi has developed over 40 types of renewable energy products.
In response to Xiaomi’s dollar bond initiative, Australia and New Zealand Banking Group analysts made the following observation: “We expect bonds would be well-supported post its removal from U.S. blacklist in May.”
Some of the products that have formed a major proportion of Xiaomi’s income include smart devices such as smartwatches, electric scooters, true wireless earphones, LED lightbulbs, and smart clocks.
