Neo Solar signs USD-100m loan with 8 banks in Taiwan
Solar cell. Author: Anders Sandberg. License: Creative Commons, Attribution 2.0 Generic
Taiwanese solar cell maker Neo Solar Power Corp (TPE:3576), or NSP, last week secured a TWD-3.3-billion (USD 100m/EUR 90m) syndicated loan from eight financial institutions.
The company will use the proceeds to repay outstanding debt, replenish working capital and for the purchase of equipment and raw materials, according to a statement on the company’s website. The initial term of the three-year credit facility can be extended by an additional two years, Neo Solar noted.
Taiwan Cooperative Bank, Land Bank of Taiwan, First Bank and CTCB Bank are co-leaders, while Chang Hwa Commercial Bank, Mega International Commercial Bank, The Shang Hai Commercial & Savings Bank and Taiwan Business Bank also participated. The involvement of this many financial institutions testifies that the Taiwanese banking industry considers that the solar segment has “a promising future”, Neo Solar noted.
Last year, companies in Taiwan sold over 10 GW of solar cells, according to data by local research firm EnergyTrend. Neo Solar was responsible for 22% of that.