Huawei Technologies said in regulatory filings on Wednesday that it plans to issue two tranches of three billion yuan (422 million U.S. dollars) bonds, each with three-year maturities. The funds raised will be used to expand the company's core business. 

Responding the issuance, Huawei said the company properly plans its financing and continuously improves its capital structure to ensure robust financial performance.

The bond market in China is developing rapidly, and has become the second largest in the world. Bond financing has become one of the major financing channels in the country. With this bond issuance, Huawei plans to tap into the Chinese bond market, diversity its financing channels, and improve its overall financing plan, the company said. 

According to Huawei, the operation funds consist of two main sources: the company's own business operations, which have accounted for about 90 percent of the total over the past five years, and external financing, which has accounted for about 10 percent. Huawei maintains robust operations and has abundant cash flow.

The funds raised from this bond issuance will be used to invest in the company's core business, i.e., ICT infrastructure, and provide better products, solutions, and services to the customers.

No issuance dates were given in the prospectus yet.