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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 six to 10 and 80bp over the CEPD rate from years 11 to 15.

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.