TAIPEI, Taiwan, Oct. 31, 2012 (GLOBE NEWSWIRE) -- DaChan Food (Asia) Limited ("DaChan Food") held a signing ceremony in Taipei today in celebration of the completion of its USD50 million Term Loan Facility (the "Facility").
The Facility marks the first-ever term loan completed by DaChan Food in the syndication market. The transaction was successfully closed with overwhelming response from the bank market, from which an aggregate commitment of USD173 million were raised for this USD50 million facility, representing a heavy over-subscription of 246 per cent. A total of twelve international financial institutions have joined the lending group. Tenor of the Facility is three years and the proceeds of which will be used to fund the company's working capital needs and capital expenditures in China. Standard Chartered Bank is the Facility Agent.
Listed on the Hong Kong Stock Exchange in 2007, DaChan Food has grown into a dominant player in the feed manufacturing, chicken meat and processed foods markets in the PRC. It is one of the largest chicken meat processor in the PRC, with commitment to product safety, reliability and quality. Despite the challenging business environment and increased competition in the chicken and poultry industry, DaChan Food has reported a growth of 8.3% in sales for the first half of 2012. Specifically, the processed food segment gained a significant increase of 19.7%. Furthermore, the Group was recognized as one of the "Top 100 Outstanding Enterprises in the Animal Agriculture Industry" and nominated again for the second annual "Green Gold Award" for outstanding sustainable businesses in China, showing wide recognition from all aspects of the society for DaChan Food.
Mr. Mark Han, Chairman of DaChan Food, said, "As a first-time borrower in the syndicated loan market, we are particularly delighted that the Facility is heavily over-subscribed amid a highly volatile economic environment. By completing this transaction, we have not only established new banking relationships which are critical to the Company's future growth, but also set up a clear benchmark for our funding exercises going forward. This is undoubtedly a milestone deal for our company and we highly appreciate the support of all the banks participating in the Facility and their confidence in our business performance."