Star Source Materials Unit Seeks Up To Eur119 Million Syndicated Loan

Star Source Materials (06067) said its wholly owned second-tier subsidiary Inov New Materials Technology (Malaysia) has applied for a syndicated term loan of up to about Eur119 million, with Hermes export credit insurance coverage, according to ETNet. The group will provide a guarantee for the loan. It said the borrowing is needed for construction of a production project. The syndicate includes Commerzbank as facility agent, while HSBC and Commerzbank serve as joint coordinators and lead arrangers for the export credit agency financing. As of yesterday, the group said its outstanding guarantees totaled about RMB 6.55 billion, equal to 66.4% of last year's net assets. It added that the guarantees were compliant, with no overdue guarantees and no guarantees provided for the controlling shareholder, the actual controller or their related parties.