Uni-President Enterprises Corp (統一企業), the nation’s largest food conglomerate, secured a five-year syndicated loan of NT$6 billion (US$182 million) from 10 local banks and three bills finance companies yesterday to refinance its operations.
“A majority of the syndicated loan will be used to pay back company debts and loans from three years ago,” said Alice Chen (陳桂芬), an official at the syndicated loan’s leading bank, Chang Hwa Commercial Bank (彰化銀行).
All of the 13 lenders had been very supportive in subscribing to the syndicated loan in the past two months, Chang Hwa said in a press statement.
The bank consortium will charge a “very low” interest rate since Uni-President has a high value business and credit reputation, Chen said.
“The rate is lower than 3 percent,” Taiwan Cooperative Bank (合作金庫銀行) president Lin Tien (林田) said.
Uni-President has more than 200 subsidiaries at home and abroad. Its China unit, Uni-President China Holdings Ltd (統一中國控股), is China’s second-largest beverage firm.
The company’s fruit and soft-drinks business has a 19 percent share of the Chinese market, next to that of Coca Cola, while its tea drink business has a 24 percent share. It also has a 10 percent share of the instant noodles market.
Uni-President China contributed NT$850 million in revenues to its Taiwanese parent firm in the first quarter, the statement said.