Taiwan's Motech secures US$197 million loan

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The Taiwanese solar PV cell manufacturer has today secured a NT$6.4 billion (around US$197 million) three year syndicated loan agreement led by Chang Hwa Commercial Bank, First Bank and Bank of Taiwan. Ten other, local, banks were also involved.

The loan will be used to repay existing debt, says Motech, in addition to funding working capital. No further details were provided.

Last December, Motech announced an NT$2.05 billion (US$64.5 million) merger with Topcell Solar International Co. Ltd, to create, what it says, is Taiwan’s largest PV cell manufacturer, at 3 GW.

The merger was set to be finalized this July 1. No official details have been announced, however Motech said in a statement released today, "After the merger of Topcell Solar International Co., Ltd. ("TSi"), Motech has become the largest manufacturer of photovoltaic cells in Taiwan and increased its revenue accordingly. We expect to achieve better operational efficiency through synergies and benefits of the merger."

Reporting its Q2 earnings at the start of August, Motech said Topcell has been included since June. In Q2, the company shipped 537 MW of cells, up from 415 MW in Q1 and 391 MW in Q2 2014.

Revenues of NT$5.1 billion were recorded this Q2, up from the NT$4.2 billion seen in Q1, but slightly down on Q2 2014’s revenues of NT$5.3 billion. At NT$549 million, Q2 net loss, although improved from Q1’s NT$488 million, was significant, compared to the income of NT$27 million in Q2 2014.