Executives at Chinese telecommunications giant, ZTE Corporation have approved a plan to seek credit facilities that will improve the Chinese multinational telecommunications equipment and systems company's access to letters of credit (L/Cs).

The plan contemplates seeking credit facilities totalling US$6.8 billion from two Chinese banks.

Trade finance focus

The company says it is looking for the equivalent of a US$2.8 billion in credit facilities from the Bank of China (BOC) and US$4 billion in loans from China Development Bank (CDB).

The facilities will cover L/Cs, loans, acceptance bills, guarantees and other trade financing.

5G rollout

ZTE has a longstanding relationship with CDB. In 2005, they began what they described as strategic cooperation based on international standard practices, agreeing a facility of US$8 billion. In 2009, the facility was increased to US$15 billion and to US$20 billion in 2012.

The Chinese telecommunications giant is a leading player in the global rollout of 5G, the 5th generation mobile network.

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