OSAKA (Kyodo) Sanyo Electric Co. said Friday it will take out a syndicated loan of ¥200 billion, its largest ever, partly to invest in a hybrid car battery factory.
The electronics maker signed an agreement with a syndicate of banks led by Sumitomo Mitsui Banking Corp.
Of the total, Sanyo Electric plans to spend ¥50 billion to redeem bonds, ¥80 billion to pay off outstanding loans and ¥70 billion to finance its envisioned capital outlays for a range of battery projects, the company said.
The projects include those associated with solar cell production and the lithium-ion battery factory to be built in Kasai, Hyogo Prefecture. The rechargeable batteries are to be used in hybrid motor vehicles.
Sumitomo Mitsui Banking has played a central role in putting together the syndicate, which includes such lenders as Resona Bank and Sumitomo Trust & Banking Co.
The syndicate is providing the credit as it recognized Sanyo's potential of posting robust earnings down the track in view of its rechargeable battery technology and its policy of using business resources behind environmentally friendly technology, industry officials said. Sanyo Electric's earlier agreement to become a Panasonic Corp. subsidiary appears to have complemented its creditworthiness, which took blows from its earlier business trouble, they added.