UMI wins Bt1.52bn syndicated loan
EXIM Thailand, as lead arranger, and two syndicated partners, namely, CIMB Thai Bank and TISCO Bank provide a loan worth Bt1.52 billion to support Union Mosaic Industry Plc (UMI)'s expansion of its manufacturing capacity.
The loan will be used to finance UMI’s acquisition of T.T. Ceramic Co Ltd (TTC), a major manufacturer of porcelain tiles, following UMI’s recent joint venture with Royal Ceramic Industry Plc (RCI), a leading manufacturer of wall tiles. This financial support aims to facilitate the expansion of UMI’s manufacturing capacity and distribution of floor tiles, wall tiles and mosaic tiles under the brands of Duragres and UMI in both domestic and overseas markets.
UMI now operates two manufacturing plants in Saraburi. The acquisition of TTC will result in an increase of UMI’s manufacturing capacity from 20 million square metres per year to 36 million square metres per year. Apart from cost saving as a consequence of the merging capabilities as opposed to building a new plant, the deal helps reduce marketing and logistics expenses since all the facilities are located close by. Further, such undertaking will be reinforced by the strength of the RCI brand which will lead to an increased market share at home and abroad of the integrated range of tile products encompassing floor, wall, and porcelain tiles, EXIM Thailand said in a statement.
The syndication contract was signed on July 30. The facility comprises both short- and long-term credit lines
