Xiaomi's expansion plans receives US$1 billion boost

Xiaomi has announced that they have secured a US$1 billion loan in debt financing from a group of 18 banks.

Electronics giant Xiaomi has announced that they have secured a US$1 billion loan in debt financing from a group of 18 banks led by Deutsche Bank and Morgan Stanley.

The Beijing-based company also raised around $1.45 billion in equity financing from venture capital firms like Qualcomm Ventures and IDG Capital.

The money will allow the company to pursue their plan of building more offline bricks-and-mortar stores, which ranks as a top priority for development by the Chinese company.

"The global syndicate of top-tier banks is a strong endorsement of Xiaomi by the international capital markets," said Shou Zi Chew, Xiaomi's chief financial officer.

Growth has been sluggish for Xiaomi in recent years and the company will be hopeful that this latest round of financing will help it to catch up with rivals Huawei Technologies, Oppo and Vivo.

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