Huawei Tech Investment, the Indonesian subsidiary of Chinese telecom company Huawei, has received a US$30mn structured trade finance facility from Deutsche Bank, for the sale of equipment to a local broadband company.

The three-year facility is secured by promissory notes from the buyer, resulting in non-recourse to the seller. It also allows Huawei to convert its account receivables into cash in order to better utilise its working capital.

Zhou Feng, finance manager, sales financing department at Huawei, says: “Deutsche Bank was able to put together a well-structured bridge financing solution for our medium-term contract with a local broadband company in Indonesia. With the resulting lowered costs of financing, we plan to continue to expand our business in this key market.”

Suman Chaki, head of working capital advisory, Asia Pacific, global transaction banking at Deutsche Bank, adds: “Supplier financing is increasingly being considered by corporates seeking to improve their balance sheet at lower costs. This innovative structured trade finance solution enabled Huawei to negotiate more favourable terms in its existing contract with the client.”