Syndicated Loan to SYNNEX Gained Strong Support with Oversubscription by Nearly 2x and Contract Signed with NT$14.4 Billion
2022.06.23

Mega Bank served as the lead arranger and managing bank for a NT$14.4 billion syndicated loan to SYNNEX Technology International Corp (TWSE:2347), and completed contract signing on June 23. A total of 9 banks participated in the loan, including Mega Bank as the lead arranger, Bank of Taiwan, Taiwan Cooperative Bank, Hua Nan Bank, and Taipei Fubon Bank. It has been eight years since SYNNEX last received a syndicated loan, and banks scrambled to take part. Mega Bank became the lead arranger by following SYNNEX's ESG and sustainable development concepts and linking the syndicated loan to ESG sustainability indicators. The syndicated loan gained strong support with oversubscription by nearly 2x, and the contract was finally signed with a limit of NT$14.4 billion, showing the high level of recognition and support the syndicate bank has for SYNNEX's business and profit performance, as well as ESG and sustainable development philosophy.

 

SYNNEX is the largest distributor of information, communications, consumer electronics, and semiconductor products in the Asia Pacific.On the strength of its solid base in global operations and thanks to the rigid demand brought by digital transformation, its revenue grew 22% to NT$408.8 billion and net profit after tax was NT$17.27 billion in 2021, surpassing NT$10 billion and both reaching record highs. SYNNEX's revenue significantly grew 16% to NT$100.9 billion in the first quarter of 2022, and was the first time its single quarter revenue surpassed NT$100 billion in the first half of any year, reaching NT$100 billion for the third consecutive quarter. SYNNEX's revenue is expected to continue to reach new heights this year under the 2022 business theme of "Yet Another Leap Forward."

 

The syndicated loan to SYNNEX will be used to replenish working capital in the mid-term, and is linked to three ESG sustainability indicators, namely "total water consumption," "total electricity consumption," and "satisfaction with home services," in hopes that the syndicate bank and SYNNEX will jointly promote sustainable development.

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