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2020/09
Taiwan Banks Show Avid Support for CTCI’s NT$100 Billion Power Plant EPC Project through Syndicated Loan
On September 17, 2020, Taiwan’s leading engineering, procurement, and construction (EPC) contractor CTCI Corporation (TWSE: 9933) signed an agreement on a NT$18.5 billion (approximately US$630 million) syndicated loan to be jointly financed by five banks in Taiwan and abroad. The loan will be used for the issuance of performance bond for the recently secured approximately NT$100 billion (US$3.4 billion) contract to build five combined cycle gas-fired power generating units at Taipower’s Hsinta and Taichung Power Plants.
The syndicated loan is led by Taiwan’s Mega International Commercial Bank and Japan-based Mizuho Bank. Other participating banks include the Philippines-based Metrobank (Taipei branch), Taiwan Cooperative Bank, and Hua Nan Bank.
Banks show strong interest in financing this project by 130% oversubscription, or equivalent to NT$24 billion in syndicated loan. Final loan amount was agreed at NT$18.5 billion in a short time-span of two months. This indicates the banks’ confidence in CTCI Corporation’s outstanding engineering expertise and track records, as well as the likelihood that the company will reach new record this year in terms of total contract amount.
Hsinta and Taichung Power Plant project award— contracted by CTCI Corporation in partnership with General Electric— breaks CTCI Corporation’s historic record in terms of single contract amount, and is Taipower’s supporting measure for Taiwanese government’s energy diversification policies.
CTCI Group continues to be a strong supporter of Taiwanese government’s nuclear-free and energy transition policies by aligning its business strategies to the adoption of more green energy and natural gas, but less coal-fired power. Apart from its extensive EPC track records in nuclear, thermal, cogeneration, and combined cycle power plants, CTCI Group has been actively tapping into renewable energy sectors such as offshore wind, solar power, and biomass through its various subsidiaries.
In addition, CTCI is a practitioner of resource cycling, whose businesses encompass waste incineration plant operation and maintenance, as well as industrial and household wastewater treatment. It has successfully opened up new business frontiers in high-tech plant wastewater treatment and semiconductor process waste solvent recycling and reuse. By utilizing its most reliable engineering expertise, CTCI is committed to fostering national development while balancing the needs for environmental protection and economic growth.
