Hikvision secures $3b credit facility
CITY OF INDUSTRY, Calif.—Hikvision has secured a five-year, $3 billion credit facility with Export-Import Bank of China, which will enable the video surveillance company to earmark additional funds for global research and development, infrastructure, and equipment and technology procurement.
“North America is Hikvision’s fastest growing region. Having capital readily available means we can invest when the need arises,” Jeffrey He, president, Hikvision USA and Hikvision Canada, told Security Systems News in an email interview. “This flexibility is particularly important as we continue to expand into the enterprise market with the goal of becoming the preferred video surveillance partner for North America’s top systems integrators.”
Hikvision maintains lines of credit with other international financial institutions including Citibank, HSBC, and Deutsche Bank, among others, including financial partners based in North America, the U.K., Germany and elsewhere. In November 2015, Hikvision secured approximately a $3 billion line of credit with China Development Bank. Additionally, in early 2016 Hikvision diversified its financing channels by issuing more than $450 million in European bonds.
While this most recent credit facility shows the continued confidence in Hikvision from global financial markets, He said that he would like to set the record straight on one issue: “Our new credit facility with Exim Bank has been deliberately misrepresented by some as a ‘subsidy’—this could not be further from the truth,” He said, pointing out that this new line of credit, while notable for its size, is similar to the credit facilities that Hikvision maintains with financial institutions around the globe. "We’re proud that these institutions recognize Hikvision’s sound financial record, solid credit rating, and the fact that we prioritize investment in our employees, R&D and in sustainable growth.”
Hikvision’s growth has historically been in the SMB market, but He said that in the past two years, the company has “actively expanded and fine-tuned our national enterprise solutions group, putting in place just the right mix of highly experienced regional sales managers, business development managers and solution application engineers to better serve our integrator partners,” He noted. “We’ve also expanded our partnerships with the A&E community and distributors.”
The $3 billion line of credit will help Hikvision to continue its commitment to innovation. Hikvision has more than 7,000 engineers, owns more than 600 patents and more than 250 copyrighted software applications, and on average dedicates around 7- to 8 percent of annual revenues to R&D, according to He.
Beyond product development, He said that Hikvision introduced at ISC West in April a new Diamond Level of its dealer program, designed to meet the needs of top enterprise-level integrators.
“We’re working hard to elevate the Hikvision brand and earn the trust of those top integrators,” said He. “We’ll be announcing more initiatives and milestones in coming months. I think the fact that we’re well capitalized is reassuring to dealers and integrators as they start to work with us on their major projects.”
Hikvision’s 2015 global revenues were $3.88 billion, representing a year-over-year growth rate of 47 percent, according to the company. Currently, Hikvision has the equivalent of $1.78 billion available in liquid funds, said He. Hikvision, based in Hangzhou, China, has 18 subsidiaries overseas, including more than 17,000 employees, and 200 technology partners, with products used in more than 100 countries.
In order to support and propel growth, Hikvision has “built a strong corporate structure” in the U.S. and Canada, He said. In addition to the network of enterprise and SMB employees, Hikvision has also opened new facilities, including a logistics center in Miami, and a head office for Canada in Montreal, which houses a bilingual French and English speaking tech support center, engineering and product support as well as Canadian marketing. The company is also in the process of completing a new headquarters and warehouse in the City of Industry, Calif.
“We’ve created good jobs and a culture that empowers our people,” said He. “At Hikvision, we believe that’s the best way to support our valued dealer and integration partners and also the best way to grow our business.”