Yageo enters NT$2.5B deal for passive component boost

Seeking to expand its medium- and long-term passive component manufacturing arm, Yageo Corp. recently entered a NT$2.5 billion ($77.08 million at NT$32.44:$1) syndicated loan financed by ten banks. Company CEO, Pierre T.M. Chen, and Mega Financial Holding Co. Chairman, Shen-Chih Cheng along with several bank representatives solidified the four-year loan deal.

The banks included in the transaction are Chiao Tung Bank, International Commercial Bank of China, Chinatrust Commercial Bank, Taipei Bank, Taiwan Cooperative Bank, Ta Chong Bank, Taishin International Bank, Hua Nan Commercial Bank, Asia Trust and China United Trust & Investment Corp. The syndicate has in fact approved NT$3.3 billion ($101.74 million) credit facility, which is 32 percent over the NT$2.5 billion ($77.08 million) originally applied for, reflecting strong confidence of the banks on Yageo's passive component production capabilities.