Chai Lease Finance Corp and All Win International Finance Corp borrowed NT$8 billion (US$247.3 million) to buy two planes from China Airlines (華航), the nation's largest air carrier, bankers involved in the deal said.
The two airline leasing companies would rent out the planes to China Airlines for 12 years, said the bankers, who declined to be identified. The carrier had the two Airbus A330s delivered at the end of last year to renew its fleet.
"China Airlines does not have to borrow from the banks to buy planes by renting them from leasing companies," said Andrew Lin, an analyst with KGI Securities Co Ltd (中信證券) in Taipei. "It can pass on the borrowing risk and costs to the leasing companies and reduce its debt."
Chai Lease Finance has hired Hua Nan Commercial Bank (
Both loans are for NT$4 billion each with a 12-year tenure and offer an interest margin of 45 basis points, or 0.45 percentage point, over the market interest rate on commercial paper, bankers said. Commercial paper is an unsecured short-term promise to repay principal on a specific date.
The carrier is seeking ways to cut costs as its net profit last year fell 85 percent because of soaring jet fuel costs. Fuel costs made up 40 percent to 45 percent of China Airlines' total costs, company Chairman Philip Wei (
Global airlines may report an industry loss of US$2.2 billion this year based on crude oil selling at US$57 a barrel, the International Air Transport Association, which represents 265 carriers, said on March 22.
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Singapore-based ride-hailing and delivery giant Grab Holdings Ltd has applied for regulatory approval to acquire the Taiwan operations of Germany-based Delivery Hero SE's Foodpanda in a deal valued at about US$600 million. Grab submitted the filing to the Fair Trade Commission on Friday last week, with the transaction subject to regulatory review and approval, the company said in a statement yesterday. Its independent governance structure would help foster a healthy and competitive market in Taiwan if the deal is approved, Grab said. Grab, which is listed on the NASDAQ, said in the filing that US-based Uber Technologies Inc holds about 13 percent of
Taiwan is open to joining a global liquefied natural gas (LNG) program if one is created, but on the condition that countries provide delivery even in a scenario where there is a conflict with China, an energy department official said yesterday. While Taiwan’s priority is to have enough LNG at home, the nation is open to exploring potential strategic reserves in other countries such as Japan or South Korea, Energy Administration Deputy Director-General Chen Chung-hsien (陳崇憲) said. While the LNG market does not have a global reserve for emergencies like that of oil, the concept has been raised a few times —
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday received government approval to deploy its advanced 3-nanometer (3nm) process at its second fab currently under construction in Japan, the Ministry of Economic Affairs said in a news release. The ministry green-lit the plan for the facility in Kumamoto, which is scheduled to start installing equipment and come online in 2028 with a monthly production capacity of 15,000 12-inch wafers, the ministry said. The Department of Investment Review in June 2024 authorized a US$5.26 billion investment for the facility, slated to manufacture 6- to 12nm chips, significantly less advanced than 3nm process. At a meeting with
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