Huga’s NT$ 2 bn syndication loan deal co-led by Hua Nan Commercial Bank

Aug. 31 CNA (translated by HUGA)-HUGA Optotech and Hua Nan Commercial Bank today signed a syndication loan agreement by its representatives in Taipei. The deal is valued at NT$ 2 bn. The credit line is reserved for funding HUGA's expansion in Central Taiwan Science Park (CTSP). Six major banks - Hua Nan Commercial Bank, Taiwan Cooperative Bank, Industrial Bank of Taiwan, Mega International Commercial Bank, Chang Hwa Bank, and The Shanghai Commercial & Savings Bank, participated in the deal. The signing ceremony is co-hosted by the chief representatives from both side - Mr. Dennis Chen from HUGA and Mr. CY Lee from Hua Nan.

Huga Optotech Inc. (HUGA) is a leading manufacturer of light emitting diode (LED) semiconductor device dedicated to LED chips and wafer production. Founded in 1998, HUGA has achieved its current status by product quality well-acclaimed by the customers.

The use of the syndication is to pay for capital expenditure on fab. 3 construction in CTSP and machinery equipments. It is expected that the fab 3 will become operational in the second half of 2008 and thus gear up more than double its current capacity.

In its published financial report for the first half of 2007, the revenues and earning after tax are NT$ 750 mn and NT$ 151 mn respectively, each representing 73% and 84% growth over last year. It is expected to see broadened market application such as handheld devices, car electronics and flat panel display drive the use of LED product and take the LED industry to next new highs.

The investment and banking community is very positive about the syndication. Up-and-rising industry outlook and solid financial performance on HUGA are both contributing to the success of the syndication being closed in two months with over-booking by 20%. In light of HUGA's funding need, the deal is finally closed at NT$ 2 bn.