Walsin Lihwa clinches NT$3.55 bil. HSBC loan

James Renwick, The China Post

Walsin Lihwa Corp. yesterday clinched a syndicated loan worth NT$3.55 billion from a banking syndication presided over and coordinated by HSBC Investment Bank Asia Ltd. The signing ceremony held yesterday was jointly presided over by Yu-Lon Chiao, chairman of Walsin Lihwa Corp. and Stuart Davis, CEO of HSBC in Taiwan. The business scope of Walsin Lihwa Group includes semi-conductor, telecommunication, opto-electronics, passive components, fiber optics and other high-tech industries. The syndication has been nearly 20 percent oversubscribed mainly attributed to the Borrower’s credit standing and its professional management.

Instead of putting up collateral of real estate and or equity pledges, emphasis is instead being placed on the overall credit worthiness and repayment capability of Walsin Lihwa Corp. for the loan.

Besides HSBC, eleven domestic and foreign banks participated in the authorization of the loan facility with HSBC taking on the role as coordinator and arranger. HSBC itself committed NT$450 million, which is the same as the other senior arranger of the facility BNP Paribas. Far Eastern International Bank, and Taipei Bank both committed NT$400 million, respectively, Asia Pacific Bank and E. Sun Bank committed NT$300 million each, United Credit Bank NT$250 million, Cathay United Bank, Hsin Chu International Bank, Hua Nan Commercial Bank and Shanghai Savings and Commercial Bank NT$200 million, each, and International Bank of Taipei NT$100 million.