Xiaomi raises $1.2 billion in debt as Beijing targets the tech sector

GUANGZHOU, China — Chinese smartphone giant Xiaomi will raise around $1.2 billion via debt issuance at a time when authorities are cracking down on China’s technology giants.

Xiaomi will issue $800 million worth of bonds due in 2031 with a coupon of 2.875% per year. The proceeds will be used for “general corporate purposes,” according to a regulatory filing.

The electronics maker will also issue $400 million of so-called green bonds with a 4.1% coupon per year. Green bonds are debt issued to raise money to support environmental projects. Xiaomi said the proceeds will go toward funding eligible projects under its “Green Finance Framework,” an environmental scheme.