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ZTE to seek debt financing in 2011

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CIOL Bureau
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SHANGHAI, CHINA: Chinese telecommunications equipment maker ZTE Corp said on Friday that it will seek medium- to long-term debt financing this year to fund overseas purchase payments and international market expenses.

ZTE said in a statement to the Hong Kong stock exchange that the financing could take the form of syndicate loans, bank facilities and corporate bond issuance, with ZTE's Hong Kong subsidiary as principal.

ZTE said it would provide a guarantee for up to $900 million in relation to the debt financing. It added that it would avoid interest rate risks by conducting interest rate swap transactions.

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