Winbond Electronics Corporation Announces NTD 5 Billion Syndicated Loan Agreement With 20 Taiwan Banks

(Taipei News) Winbond Electronics Corporation, in conjunction with 20 Taiwan banking institutions, today announced a syndicated loan agreement in the amount of NTD 5 Billion. A formal signing ceremony will be held today at the Grand Hyatt. Mr. Arthur Y. C. Chiao, Chairman of Winbond, and Stuart Davis, CEO of HSBC Taiwan, will participate in the signing ceremony. The main purpose of the agreement is to fund financial requirements for Company operations and to adjust the schedule for long-term loan payments.

This syndicated loan constitutes Winbond's major fund-raising activity for the year. HSBC arranged the loan and, in addition, the Taiwan Cooperative Bank and Chang Hwa Bank have been invited to join. Taiwan Cooperative Bank pledged NT $800 Million; both HSBC and Chang Hwa Bank have committed NT $390 Million respectively. There are other seventeen domestic banks also participating. Hsinchu International Bank, with a NT $390 Million commitment, is also a primary participant in the agreement. Other co-participants include: China Development Industrial Bank (NT $310 Million) and Jih-Sun International Bank (NT $280 Million). Additional banking institutions involved in the loan agreement include: Far Eastern International Bank (NT $240 Million), The Farmers Bank of China (NT $240 Million), International Commercial Bank of China (NT $240 Million), Taiwan Business Bank (NT $240 Million), First Commercial Bank (NT $200 Million), Asia Pacific Bank (NT $160 Million), Central Trust of China (NT $160 Million), COTA Commercial Bank (NT $160 Million), Hua Na Commercial Bank (NT $160 Million), International Bank of Taipei (NT $160 Million), Taichung Commercial Bank (NT $160 Million), United-Credit Commercial Bank (NT$160 Million), Bank of Pan Hsin (NT $80 Million), and Kao Shin Commercial Bank (NT $80 Million).

The mid-term loan comes with an interest rate of 1.6 percent over the commerce promissory notes' primary market fixed rate of interest. Depending upon Winbond's profitability, which will be based on CPA certified annual and semi-annual financial statements, interest insurance coverage can increase four fold, and the rate can be adjusted to 1.3 percent. This loan structure can facilitate the borrower's working capital in floating-rate funds; thereby giving Winbond the possibility of enjoying the current and ideal low interest rate.

This fund raising plan has received wide acceptance by local banks. Although the total value of the syndicated loan is substantial, NT $5 Billion, participation by local banks exceeded expectations by nearly 30 percent, demonstrating the wide recognition Winbond has received as the leading IC supplier in Taiwan semiconductor industry.

Positioned as "The Winning Solutions Provider", Winbond's two business groups, the "Logic IC Business Group" and the, "Memory IC Business Group" take complementary interests and cooperatively grow the Company's business through horizontal integration. The Logic IC Business Group offers a broad portfolio of complementary products, providing customers with value-added solutions. The Memory IC Business Group focuses on DRAM, Flash, SRAM and Non-Volatile Memory ICs. Winbond fully utilizes the productivity and flexibility of the Company's two 8-inch fabs and teams with world-class leaders to provide advanced technology processing. In this way, the Company also provides total solutions for memory ICs that are aimed at fulfilling the demanding needs of consumer and electronic applications. This year has already shown positive signs of recovery, pointing to an improved business outlook for semiconductors in 2002. Weathering the downturn of 2001, Winbond has emerged even more focused as a company by enhancing its core competences. The Company is dedicated to providing its customers with the most value-add solutions in the industry now, and in the future.

About Winbond 
Winbond Electronics Corporation was founded in 1987 and is based in Hsinchu Science-Based Park, Taiwan. It has since become the largest branded IC Company in Taiwan, offering a broad range of PC and peripheral-related ICs, consumer electronics ICs, multimedia ICs, and memory ICs. Winbond is a market leader in PC I/O controllers, speech synthesizers and MPEG decoders in Taiwan and East Asia. Currently, Winbond has three wafer fabs in operation and utilizes process technology down to 0.13 micron. With more than 4,100 employees worldwide, the Company has subsidiaries in San Jose, USA; Japan; Hong Kong and Shanghai, China.

About HSBC
The Hongkong and Shanghai Banking Corporation Limited is the founding and principal member of the HSBC Group. The Bank entered the Taiwan market in 1984 with eight branches island wide. As one of the world's largest banking and financial service organizations, the HSBC Group has more than 6,500 offices in 78 countries and territories with assets of US$692 billion at 30 June 2001.

    Wilson Wen
    Vice President of Administrative Center
News Liaison
    Mike Liu
    Deputy Director

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