Chi Mei Optoelectronics Corp (奇美電子), the nation's second-largest maker of flat-panel screens used for computers and televisions, led this week's loan borrowers in Asia as it seeks as much as NT$60 billion (US$1.8 billion) to increase production.
The company hired 18 banks including Chinatrust Commercial Bank (中國信託), HSBC Holdings Plc, ABN-Amro Holding NV and Bank of America Corp, to arrange the seven-year loan for a NT$100 billion project that will eventually produce as many as 90,000 screens a month in 2008, bankers involved in the transaction said.
Demand for slimmer screens has fueled profits of the nation's liquid-crystal-display screen makers, allowing them to get cheaper loans as local and foreign banks become more confident about lending to the industry.
"Foreign banks are getting more comfortable with LCD makers from a credit perspective because of the impressive growth in demand," said Kevin Tham, ABN- Amro's head of loan distribution and syndication in Asia.
"Cash flows are justifying the huge capital expenditure requirements," he said.
Chi Mei said last Thursday that its net income for this year will more than triple to NT$30 billion compared with last year.
Late last month, the company posted first quarter net income of NT$8.3 billion as it shifts production to larger, higher-priced TV screens.
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