(June 07, 2005) Hsinchu, Taiwan — ChipMOS Technologies Ltd.’s 70.3% owned subsidiary, ChipMOS Taiwan, has signed a syndicated loan agreement with a bank syndicate consisting of six local banks in Taiwan. S.J. Cheng, ChipMOS chairman and CEO, along with representatives from the bank syndicate, were present at the signing ceremony in Hsinchu, Taiwan.
This 4-year floating-rate loan agreement provides a NT$1 billion (or approximately US$31.9 million) credit line to ChipMOS Taiwan. Taiwan Cooperative Bank is acting as the lead manager of the syndicate, and the five co-manager banks are Chang Hwa Bank, Hua Nan Commercial Bank, Ta Chong Bank, Shin Kong Bank, and Fuhwa Bank. Loan proceeds will be used by ChipMOS Taiwan for working capital and general corporate purposes, and are currently intended to be used primarily in support of the company’s Taiwan operations.
“Our business strategies have weathered the challenges of the market downturn that started in 2001, which is evidenced by our current market competitiveness. Receipt of the syndicated loan is a positive recognition of our recent operating results and future prospects,” says Cheng. “I would like to express my appreciation to Taiwan Cooperative Bank and the other five banks for their confidence in and support of ChipMOS.”