upn-taipei news-bank-2010-10-25-03-CTL arranges a US$450 million five-year syndicated loan to Pegatron Corp

CTL arranges a US$450 million five-year syndicated loan to Pegatron Corp

15 local and foreign banks ink the deal with Pegatron today

Citibank Taiwan Ltd (CTL) and 14 other banks today (Oct. 25) signed a deal with Pegatron Corp to provide a five-year syndicated loan worth US$450 million. Pegatron Corp Chairman Tung Tzu-hsien and CTL President Christie Chang both attended the signing ceremony.

The syndicated loan is organized by six arrangers, which are CTL, Taipei Fubon Bank, Land Bank of Taiwan, Develop Bank of Singapore, Bank of Taiwan and Taiwan Cooperative Bank. Other participant lenders are The Shanghai Commercial & Savings Bank and, Chinatrust Commercial Bank, Chang Hwa Commercial Bank, Cathay United Bank, E. Sun Bank, Hua Nan Commercial Bank, Taiwan Business Bank, Bank of Tokyo-Mitsubishi UFJ, and Mizuho Corporate Bank. The rate is 0.55 percentage points more than the London Interbank Offered Rate, one of the most competitive in the market so far this year. With the rate and over subscription, the strong lineup shows the banking industry’s confidence about the economy and its recognition of Pegatron’s development potential.

Pegatron is a new DMS (Design and Manufacturing Service) company with extensive experience in product development and vertically integrated capabilities. It aims at meeting clients’ various needs efficiently, providing services from creative designs to a systematic production and manufacturing process. Pegatron develops diversified product lines covering motherboards, desktop PCs, notebooks, netbooks, smart book, MID (Mobile Internet Device), VGA, boradband communicatons, handheld device, MP3, and E-reader.
To maintain its competitiveness, Pegatron applied for a syndicated loan worth US$450 million from the lender group to expedite its business operations and capital expenditure.

The syndicated loan once again demonstrates CTL’s healthy financial structure and its promise and advantage of accessing its resources to help Taiwanese companies develop. CTL President Christie Chang said, “Citi has been serving as a role to help Taiwanese companies develop. We appreciate Pegatron’s support and trust, allowing us the opportunity to participate in its growth. CTL is happy to work with Pegatron to boost Taiwan’s competitive edge.”
Christie Chang also emphasized that Citi will continue helping optimize client and making it the best strategic partner in Taiwanese enterprises.
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About Citi
Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Through Citicorp and Citi Holdings, Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management. Additional information may be found at www.citigroup.com or www.citi.com.