September 24, 2007 – Semiconductor packaging/assembly/test services provider ASAT Holdings Ltd. said its Chinese subsidiary ASAT Semiconductor (Dongguan) Ltd. has received a commitment for RMB 150 million (roughly US $20 million) in financing from a Chinese bank.
The deal both strengthens the unit’s financial position and gives it flexibility for business expansion, according to parent group CFO Kei Hong Chua. “In the last 12 months we have undertaken a complete re-engineering of nearly every aspect of how we do business,” he said in a statement. “We have made enormous progress and ASAT is emerging as a strong competitor in the assembly and test market.”
The financing, a secured multi-currency revolving credit facility, has an aggregate commitment of RMB 150M/$20M secured by the China subsidiary’s trade receivables. Interest on borrowings will be at the applicable index rate, plus 0.80%.