Companies to Work Closely to Expand Overseas Market Opportunities
11 June 2009, Shenzhen, China – ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a leading global provider of telecommunications equipment and network solutions, today announced that it has signed a memorandum of understanding (MOU) with SISTEMA Group, a multinational telecom operator from Russia, and China Development Bank (CDB) to strategically cooperate with the goal of jointly expanding overseas market opportunities.
In order to establish a successful business model and tripartite consensus, the strategic MOU aims to further strengthen cooperation between the three parties to build and pursue potential opportunities in relevant and targeted geographical areas. China Development Bank has agreed to provide long-term credit facilitation to SISTEMA Group’s subsidiaries and ZTE’s equipment and services contracts. The MOU represents strong financial support for SISTEMA Group’s subsidiaries and ZTE with CDB’s stable and robust China financial resources.
CDB is committed to supporting Chinese enterprises with their international business strategies and growth. It’s support of ZTE, which holds strict operation standards and transparent high-tech telecom equipment manufacturing practices, has helped the Company expand its overseas markets, and enhance its relationship with worldwide leading telecom operators. In March 2009, ZTE and China Development Bank entered into a strategic cooperation where China Development Bank will provide ZTE a US$15 billion credit line to establish an investment and financing platform, including expansion to overseas markets.
Today, global and leading telecom operators are under enormous pressure to develop next-generation telecom technologies, such as 3G, to meet market demands. However, in view of the current global financial crisis, the majority of mainstream financing agencies based in Europe and the U.S. are trying to address issues such as inadequate liquidity and the credit crunch. China Development Bank has an advantage in that it possesses a healthy balance sheet, as well as strong financing and credit ability, and sees positive future prospect for the global telecom industry.
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