China Development Bank Bolsters Partnership with ZTE, Financing Facility Expanded to US$20 Billion
4 December 2012, Shenzhen, China – ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a publicly-listed global provider of telecommunications equipment, network solutions and mobile devices, today announced the company entered into a new strategic partnership agreement with China Development Bank (CDB) to deepen business cooperation. Chen Yuan, Chairman of CDB, and Hou Weigui, Chairman of ZTE, officiated at a ceremony in Beijing to celebrate the strengthening of a partnership that leverages the financial resources of CDB and ZTE’s superior technology in the telecommunications industry.
Under the new agreement, CDB will expand its financing facility for ZTE to US$20 billion, as the two sides build on their long-term partnership of mutual trust. In 2005, CDB and ZTE began their strategic cooperation based on international standard practices, agreeing a facility of US$8 billion. In 2009, the facility was increased to US$15 billion.
The prevailing conditions in the global finance offer new opportunities for CDB and ZTE to deepen their cooperation - CDB will utilize its strengths in integrated financial services to help ZTE achieve its strategic goals, and drive ZTE’s overseas investment and business development in priority sectors.
"We sincerely thank the CDB for their commitment to ZTE’s development of overseas operations,” Mr. Hou said. “ZTE is in a leading position in the worldwide telecommunications industry, and has a comprehensive strategy to address markets globally.”
"ZTE will leverage the CDB’s financial support and grasp the opportunities in the markets for 4G, fixed broadband, enterprise networks and terminals, consolidate our advantages and migrate to the higher value solutions, as we aim to achieve a global top-3 position before 2015,” Mr. Hou said.
The expansion of the strategic partnership is a sign of CDB’s confidence in ZTE, as the uncertain economic recovery in the United States and the debt crisis in Europe weaken growth in the global telecommunications market. With the support from the CDB, ZTE is confident of entering a new phase of growth.