HUAWEI SIGNS BENCHMARK DEAL WITH EULER HERMES TO COVER EUROPEAN MOBILE BUSINESS AGAINST PAYMENT DEFAULT
Euler Hermes, the global leader in trade credit insurance, and Huawei, a leading global ICT solutions provider, announced an agreement to cover the trade receivables for Huawei’s consumer device business in Europe. In 2013, Huawei’s consumer business was the world’s third largest supplier of smartphones by units shipped and contributed 24% of Huawei’s global revenue. This agreement provides a new supporting framework in respect of credit management arrangements for Huawei’s Consumer business in Europe.
Using its proprietary database of companies operating in markets covering 92% of global GDP, Euler Hermes will support Huawei’s Consumer business to prioritize target countries for market entry, assess and categorize potential business partners based on their credit and payment history, and manage its portfolio of existing business relationships.
“Operating in highly competitive European business environments with diverse regulatory frameworks, and given our global market reach, we require service partners with extensive knowledge and experience both in Europe and globally,” explains Cathy Meng, Huawei Corporate CFO. “This is a pioneering partnership for us as it will help to free up management and financial resources to focus on innovation, brand value and differentiation related to high-quality, reasonably-priced consumer and industrial products.”
“This partnership is a significant milestone for Euler Hermes since our APAC team provides all consultancy and Euler Hermes World Agency unit covers Huawei’s European consumer device business,” explains Wilfried Verstraete, Chairman of the Management Board of Euler Hermes. “Chinese multinationals are now able to obtain trade credit insurance solutions meeting the highest standards of corporate governance, and tailored products that fit their needs wherever they trade.”
The agreement was announced at the Huawei Information & Communications Technology (ICT) Finance Forum in New York.The agreement is issued by Euler Hermes World Agency, the dedicated team within the Euler Hermes Group specifically tasked with servicing multinational clients through tailored solutions, and the global market leader in the multinational segment. Terms and conditions have been structured and harmonized to support Huawei’s governance.
Making its foray into global markets as early as 1997, Huawei ranks among the pioneering Chinese-headquartered multinational operations going global. Key selection criteria for Huawei included product and geographical coverage, and financial solidity. Euler Hermes’ AA- ratings, from Standard and Poor’s and from Dagong Europe as the first and only non-Chinese insurer to be rated by a Chinese rating agency, were key.
Euler Hermes – the largest and fastest growing private market credit insurer in the Asia Pacific supports companies to establish and maintain trading relationships, from initial counterparty vetting to prompt claims payment in the event an approved counterparty defaults on payment. Counterparty risk in both developed and emerging markets is monitored throughout the life of each policy.