Semiconductor Manufacturing International Corporation's (SMIC) Beijing branch has entered into a US$600 million 5-year loan facility from a group of Chinese banks.
The proceeds of the loan will help to expand the capacity at SMIC's three 300-mm fabs located in Beijing. SMIC will guarantee SMIC Beijing's obligations under the loan.
China Development Bank and China Construction Bank co-led the arrangement of the Loan with other participants which include Bank of China, Agricultural Bank of China, China Merchants Bank, HuaXia Bank, China MingSheng Bank, Bank of Communications, Bank of Beijing, Industrial and Commercial Bank of China (Asia) and CITIC Ka Wah Bank.
Dr. Richard R. Chang, Chief Executive Officer of SMIC, said, "We are pleased to receive the support of our Chinese banking partners to finance a portion of SMIC Beijing's ongoing capital requirements for its expansion plans. We plan to fund our future expansion by both internally generated cashflow and additional loans to be obtained from financial institutions."