National Development Council Promotes Investment Guarantees for US Investment; Bank SinoPac Contributes US$25 Million

(CNA Taipei, June 29) Bank SinoPac announced today that its board of directors approved on June 26 a contribution of US$25 million to participate in the corporate investment in the United States financing guarantee mechanism program. By collaborating with the government, the program offers financing guarantees of up to 50%, aiming to leverage financial strength to support Taiwanese enterprises in securing operating capital and expanding their overseas presence.

To deepen the strategic partnership between Taiwan and the United States in high technology, the National Development Council has launched the corporate investment in the United States financing guarantee mechanism. A total of 15 public and private banks have expressed their intention to participate in the first phase of fundraising, with a target amount of US$575 million. Including the National Development Fund's contribution of US$800 million, the total for the first phase special fund can reach US$1.375 billion.

Bank SinoPac stated in a press release today that with the rapid development of artificial intelligence technology, there is strong demand for semiconductor chips, servers, and related electronic components produced by Taiwanese enterprises. The corporate investment in the United States financing guarantee mechanism is a government initiative to support financial institutions in providing credit lines of up to US$250 billion through financing guarantees, thereby enhancing the global competitiveness of Taiwan's technology industry and deepening its strategic layout, while also expanding the scope of domestic banking financial services.

Bank SinoPac explained that eligible participants for this guarantee mechanism include domestic enterprises, foreign enterprises controlled by Taiwanese nationals, companies in the semiconductor and ICT (Information and Communication Technology) supply chains, and other approved projects. The funds can be used for capital expenditures such as the purchase of machinery and equipment, or for operating capital and the development of industrial clusters.

Bank SinoPac added that it has established overseas service points in the United States, Vietnam, Hong Kong, and Macau, and has also invested in Bank SinoPac (China) and Amret, Cambodia's largest microfinance institution. Last April, it received approval to establish a Sydney branch in Australia. The bank aims to provide comprehensive local financial solutions to accompany enterprises in expanding their overseas business opportunities and to serve as a strong financial backing for its clients.

In the first phase of the corporate investment in the United States financing guarantee mechanism, 15 public and private banks responded. These include Taiwan Bank and CTBC Bank, each contributing US$75 million; Mega International Commercial Bank, Hua Nan Commercial Bank, Cooperative Bank of Taiwan, and First Commercial Bank, each contributing US$50 million; and Bank of Taiwan, Cathay United Bank, Taishin International Bank, E.SUN Bank, Bank SinoPac, Yuanta Bank, Chang Hwa Commercial Bank, Taiwan Business Bank, and Land Bank of Taiwan, each contributing US$25 million. (Editor: Pan Yi-ching) 1150629

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