CTBC Bank (中國信託銀行) and 16 other banks granted Innolux Corp (群創) a syndicated loan of NT$37.5 billion (NT$1.27 billion) to help the LCD panel maker boost its operating capital, CTBC said on Wednesday.
CTBC Bank is the syndicated loan’s lead arranger, with four state-run banks — Mega International Commercial Bank (兆豐銀行), Taiwan Cooperative Bank (合庫銀行), Hua Nan Commercial Bank (華南銀行) and Chang Hwa Bank (彰化銀行) — acting as the joint mandated arrangers, they said in a joint statement.
The syndicated loan was 160 percent oversubscribed as Innolux had intended to borrow NT$30 billion, CTBC said in the statement.
The loan would help Innolux repay its debt, improve its working capital and strengthen its cash position to weather the industrial slump caused by the COVID-19 pandemic, the statement said.
CTBC said it has built a long-term partnership with Innolux and remains confident about its competitiveness and financial strength, despite heightening competition in the industry, new capacity from China, postponement of the Tokyo Olympics and lingering uncertainty due to the pandemic, it added.
The Innolux deal is CTBC Bank’s second major syndicated loan this year after it helped arrange a NT$9 billion loan for HTC Corp (宏達電) on Monday.
Earlier this month, 22 banks led by Bank of Taiwan (台灣銀行) and Mega Bank offered a syndicated loan of NT$48.5 billing to Yageo Corp (國巨), the world’s No. 3 supplier of multilayer ceramic capacitors, to fund its expansion and the acquisition of US firm Kemet Corp.
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