Inventec Corp (英業達) yesterday signed a US$625 million syndicated loan with a group of banks led by state-run Hua Nan Commercial Bank (華南銀行) to bolster its development of artificial intelligence (AI) servers and other key products.
The syndicated loan was 150 percent oversubscribed as Inventec, which produces notebook computers, servers, data-center systems, automotive electronics and smart devices, had intended to borrow US$500 million, a news release showed.
The deal comes as Inventec scales up its manufacturing capacity as demand for AI servers, automotive electronics and telecommunications devices continues to grow.
Photo courtesy of Inventec Corp
The company is also diversifying its overseas production to Mexico, Malaysia, Vietnam, Thailand and the US.
Inventec has manufacturing bases for automotive electronics in Vietnam and Mexico, production facilities for wearable devices in Malaysia and Vietnam, notebook computer assembly lines in Thailand and Vietnam, and server plants in Taiwan, Mexico and Thailand.
Last week, the company completed a joint venture deal with Dixon Technologies (India) Ltd to manufacture notebook computers, servers and desktop PCs in India. Under the deal, Inventec holds a 40 percent stake, while Dixon owns the remaining 60 percent.
Inventec earlier this month reported cumulative sales of NT$519.9 billion (US$16.96 billion) for the first nine months of the year, up 15.92 percent year-on-year, on the back of robust shipments of servers and notebook computers.
The company said it expected the syndicated loan to provide the capital it needs to expand its global operations, enhance its international competitiveness and drive long-term, stable growth.
Hua Nan Bank is the lead arranger of the syndicated loan, and was joined by other lenders, including Bank of Taiwan (臺灣銀行), Mega International Commercial Bank (兆豐銀行), First Commercial Bank (第一銀行), Cathay United Bank (國泰世華銀行), Land Bank of Taiwan (土地銀行), Taiwan Cooperative Bank (合作金庫), Chang Hwa Commercial Bank (彰化銀行), E.Sun Commercial Bank (玉山銀行), Taishin International Bank Co (台新銀行), Bank of China (中國銀行) and China Construction Bank (中國建設銀行).
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