【TAIPEI TIMES】Electric bus maker secures NT$1.5bn syndicated loan
RAC Electric Vehicles Inc (華德動能科技) has secured a NT$1.5 billion (US$50.2 million) syndicated loan to fund its capacity expansion after receiving significant orders from customers, the electric bus manufacturer said yesterday.
Hua Nan Commercial Bank (華南銀行) acted as the lead arranger of the syndicated loan, with 15 other banks participating, RAC said in a statement.
The lenders have oversubscribed to the loan by more than 100 percent, it said.
Photo courtesy of Hua Nan Commercial Bank
RAC has won bids to supply 169 new electric buses to the nation’s major bus operators, including Capital Bus Co (首都客運), Danan Bus Co (大南客運) and Geya Bus Transport Co (巨業交通), through a government pilot program. The operators run services in Taipei, New Taipei City, Taichung and Kaohsiung.
Winning bidders are to receive a subsidy of up to NT$10 million per vehicle. The program aims to boost production of locally made electric buses to 16,000 units a year by 2030.
RAC plans to ship 105 electric buses this year, most of which would be delivered in the second half, it said.
The Taoyuan-based company last year delivered 33 electric buses to local bus operators, such as San Chung Bus Co (三重客運), it added.
To cope with rising customer demand, RAC’s parent company, Mobiletron Electronics Co (車王電子), has spent NT$2.5 billion to build a factory in Taichung for RAC to expand its capacity. The new factory has an installed capacity of 1,700 electric buses and 6,000 automobile chassis a year.
The plant is to start operations next quarter, RAC said.
Mobiletron owns a 54.64 percent stake in RAC.
The electric vehicle company has also expanded its business overseas and is working with Sumitomo Corp to ship electric buses to Japan, it said.
RAC delivered the first batch of electric buses to Japan in April to be used in Kyushu, it added.
RAC reported net losses of NT$138.03 million last year, compared with losses of NT$154 million in 2020. Losses per share improved to NT$1.53 last year, from NT$2.03 in the preceding year.