Chailease Berjaya raises RM450 million through maiden MYR syndicated term loan lead-arranged by Mizuho Bank & OCBC Bank
Chailease Berjaya Credit Sdn Bhd (“Chailease Berjaya”), the overseas subsidiary of the Taiwanese leasing giant Chailease Holding Company Limited, has successfully raised RM450 million, its maiden Malaysian Ringgit syndicated term loan facility.
The syndicated loan was over-subscribed and was upsized to RM450 million from an initial facility amount of RM300 million. Mizuho Bank (Malaysia) Berhad and OCBC Bank (Malaysia) Berhad, the Coordinating Mandated Lead Arrangers and Bookrunners, syndicated the loan to three other banks namely, Bangkok Bank Berhad, Bank of China (Malaysia) Berhad and Malayan Banking Berhad.
Mr Simon Hou, Chairman of Chailease Berjaya and President of Chailease Finance Co. Ltd, said Chailease group has just launched its Golden Ten-Year Plan beginning of this year and ASEAN market plays a pivotal role in realising the plan. Chailease Berjaya is strategically positioned to contribute to business development in the ASEAN market.
The syndicated loan proceeds will be utilised to support its business expansion.
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 as well, which brings higher margins to the company. By collaborating with Berjaya Auto’s dealer network and approved independent car dealers, Chailease Berjaya now has a network of more than 1,500 dealers in Peninsular Malaysia. Besides the HQ in Kuala Lumpur, Chailease Berjaya has seven more offices, which are located in Johor (2), Ipoh, Penang, Melaka, Seremban and Pahang. The company has plans within the next five years to further expand its financing business to commercial cars, heavy equipment, individuals as well as Small Medium Enterprises (SMEs).
According to Mr Hou, Chailease Berjaya has a team of highly qualified, competent and experienced personnel to manage the operations of its respective businesses from both the Chailease and Berjaya Groups.
“The strong support provided by the lenders of this syndication will pave the way for future business opportunities, as the company expands its business throughout Malaysia by offering more products and services going forward,” he said.
Chailease Holding Company Limited (“CHC”) is the ultimate holding company of Chailease Berjaya. CHC was incorporated in 1977 and was successfully listed on the Taiwan Stock Exchange in December 2011 with a Market Capitalization of USD2.7 billion (as at June 2018). CHC remains the largest leasing company in Taiwan with a market share of over 40% and is amongst the Top 50 companies in Taiwan, in terms of market value. CHC’s revenue has been gradually increasing since FYE2014, with a record of USD1.33 billion for FYE2017.
In the foreseeable future, Chailease Berjaya will look to expand throughout both West and East Malaysia with an improved range of new products and services for its ever-growing client base.