Gintech Energy Corporation (Gintech Energy) has entered into a syndicated loan agreement for a total of TW$4.2 billion (US$125 million) to support its existing debt repayments and raw material procurement.
The lenders consist of 13 domestic banks led by First Bank and co-led by Taiwan Cooperative Bank. The 3-year syndicated loan facility is denominated in Taiwan dollars which can be extended for another 2 years. The loan will be used to repay the existing debts and to finance the working capital. With the banking industry’s recognition of Gintech Energy’s outperformance and the promising future of the solar sector, this loan was 17% oversubscribed, demonstrating the strong support from the financial institutions in Taiwan. The other participants in this deal include the Land Bank of Taiwan, Chang Hwa Bank, the Shanghai Commercial & Savings Bank, Mega International Commercial Bank, En Tie Bank, Hua Nan Bank, Taichung Commercial Bank, COTA Commercial Bank, Taishin International Bank, CTBC Bank, and Bank of Taiwan.
Gintech Energy is delighted to secure this loan facility to further strengthen its balance sheet. The Company is optimistic about the solar industry’s growth potential and expects to continue its outperformance among industry peers with its leading technology, cost structure, brand recognition, product quality, high efficiency, vertical integration, customers relationship, and, most importantly, the profit contribution from Gintech (Thailand).