Vietnam textile firm Unitex secures $52.5 mln loan from 5 foreign banks

Unitex Corporation, a subsidiary of local textile firm Century Synthetic Fiber Corp, has secured a $52.5 million loan from five leading Asian banks to expand one of its factories.

Taiwan-based CTBC Bank and Thailand-based Kasikorn Bank are the two mandated lead arrangers and bookrunners, according to a Friday announcement by Century Synthetic Fiber Corp, listed on the Ho Chi Minh Stock Exchange (HoSE) as STK.

The firm added that Shanghai Commercial and Savings Bank (Offshore Banking Branch) and Entie Commercial Bank, both based in Taiwan, are two mandated lead arrangers. E.Sun Commercial Bank, another Taiwan-based lender, is the designated loan arranger.

The loan has a term of 57 months, and is set to be disbursed in 2023 and 2024. It aims to serve the first phase of the Unitex factory expansion, particularly the purchase of machinery, equipment, and systems for the facility. The factory will have an annual capacity of 34,000 tons in the first phase.

The new plant could help the firm double its capacity and employ 400 people, said STK CEO Dang Trieu Hoa.

With the production of eco-friendly fiber, the factory aims to help STK raise the usage of recycled materials, such as recycled PET particles from plastic bottles, towards its goal of a 50% carbon footprint reduction.

Last year, STK earned a post-tax profit of VND240.37 billion ($10.15 million), down 13.68% year-on-year, on a revenue of VND2,117 billion ($84.41 million), up 3.59%.

STK shares closed up 1.32% to VND26,800 ($1.13) on Friday.