This article first appeared in The Edge Financial Daily on June 25, 2019

KUALA LUMPUR: Chailease Berjaya Credit Sdn Bhd, a subsidiary of Taiwanese leasing giant Chailease Holding Company Ltd (CHC), has successfully raised its maiden ringgit syndicated term loan facility of RM450 million.

The syndicated loan was oversubscribed and upsized to RM450 million from an initial facility amount of RM300 million, OCBC Bank (Malaysia) Bhd said in a statement yesterday.

OCBC, together with Mizuho Bank (Malaysia) Bhd, were the coordinating mandated lead arrangers and bookrunners and had syndicated the loan to three other banks — Bangkok Bank Bhd, Bank of China (Malaysia) Bhd and Malayan Banking Bhd.

OCBC said proceeds of the syndicated loan will support the business expansion of Chailease Berjaya, which CHC owns jointly with Berjaya Capital Bhd.

Chailease Berjaya chairman and Chailease Finance Co Ltd president Simon Hou said the company is strategically positioned to contribute to business development in Asean. This will also help the group achieve its newly launched Golden Ten Year Plan.

Chailease Berjaya’s business has grown rapidly since its incorporation in October 2015. To date, Chailease Berjaya has moved beyond financing passenger cars to include superbikes, offering higher margins for the company.

By collaborating with Berjaya Auto’s dealer network and approved independent car dealers, Chailease Berjaya has more than 1,500 dealers in Peninsular Malaysia.

The company has plans within five years to further expand its financing business to commercial cars, heavy equipment, individuals as well as small and medium enterprises.

CHC, incorporated in 1977, was successfully listed on the Taiwan Stock Exchange in December 2011 with a market capitalisation of US$2.7 billion as at June 2018.

It remains the largest leasing company in Taiwan with a market share of over 40%, and is among the top 50 companies there in terms of market value. CHC’s revenue has been gradually increasing since financial year 2014 (FY14), with a record of US$1.33 billion for FY17.