SMIC Tianjin secures financing for expansion
Jun 01, 2006
Semiconductor Manufacturing International Corporation has announced that its wholly-owned subsidiary, Semiconductor Manufacturing International Corporation, has entered into a US$300 million 5-year loan facility with a group of banks located in the People's Republic of China.
The proceeds of the Loan will help to expand the capacity at SMIC's 200-mm fab located in Tianjin. SMIC will guarantee SMIC Tianjin's obligations under the Loan.
China Construction Bank led the arrangement of the Loan with other participants, which include China MingSheng Bank, China Development Bank, Industrial and Commercial Bank Of China, Agricultural Bank of China, Bank of China, China Merchants Bank, China BoHai Bank, Bank of Communications, and Bangkok Bank.
Dr. Richard R. Chang, Chief Executive Officer of SMIC, said, "We are pleased that with strong support from our banking partners, the Tianjin loan is significantly oversubscribed - exceeding our target loan amount by US$150 million. We plan to use the loan proceeds and internally generated cash flow to fund the Tianjin fab expansion.