Beijing-headquartered smartphone maker Xiaomi has secured a USD1 billion loan from 29 banks with an aim to increase its international expansion. Allen & Overy is advising the borrower Xiaomi on this significant loan in the smartphone sector.

The syndicate of lenders to Xiaomi spreads across continents and includes a diverse mix of Chinese, European, North American and Latin American banks. The loan will be split evenly into two USD500 million tranches: a term loan and a revolving credit facility.

Privately owned company, Xiaomi was established in 2010 by technology entrepreneur Lei Jun and is today one of China’s top smartphone makers; designing, developing, and selling smartphones, an Android-based OS, and other consumer electronics in Taiwan, Hong Kong, Singapore, Malaysia, Philippines and India. The company has targeted Brazil, Mexico and Indonesia as countries for further market investment.

Commenting on the deal, banking partner and managing partner of the Hong Kong office, Vicki Liu said: “This is a milestone loan for Xiaomi, a privately owned company with such a successful growth rate in China and in Asia that it has attracted the appeal of the world’s premier lenders. We are very proud to have been trusted by Xiaomi as both a legal adviser and a commercial partner in continuing the expansion of its business.”

Partners Vicki Liu and Yvonne Ho led the Allen & Overy team with support from associates Elaine Liu and Welber Yim.

Allen & Overy is the market leader for high-profile, big-ticket corporate lending transactions for the top Hong Kong and Chinese corporates, including transactions for Sinopec, CNOOC, Hutchison Whampoa, SOHO China, Noble Group, Shimao Property Group and Minmetals, amongst others.