Taiwan’s Shin Kong Environmental Technology has mandated Industrial Bank of Taiwan for a NT$1.6bn project financing to fund the development, construction and operation of a new incineration plant in Hsinchu county.
The facility is divided into a NT$1.4bn 15-year term loan and a NT$200m three-year performance bond guarantee.
Lenders to the loan tranche will receive a margin that steps down from 140bp over the CEPD rate for the first five years to 100bp over the CEPD rate between years
For the guarantee facility, banks earn a fee of 85bp.
The borrower is a subsidiary of the Shin Kong Group and is involved in waste management.
