Paiho Shih lands $150M loan to fund cross-border factory push

What's the deal? Paiho Shih HoldingsDealroom has a profile for this one. Try Dealroom → (8404.TW), a global supplier of footwear and apparel materials, has signed a five-year, $150 million syndicated loan for working capital. Bank SinoPac arranged the facility alongside CTBC BankDealroom has a profile for this one. Try Dealroom →, Taipei Fubon BankDealroom has a profile for this one. Try Dealroom →, and Cathay United BankDealroom has a profile for this one. Try Dealroom →, with signing completed on the 16th.

Who does what? Bank SinoPac serves as both facility agent and collateral agent on the deal. The three other Taiwanese lenders joined as co-arrangers.

What's the endgame? Paiho makes fabrics and accessories — hook-and-loop fasteners, woven shoelaces, and elastic bands — for major outdoor and casual footwear brands. Its subsidiary Vietnam Paiho, one of Vietnam's largest fabric makers, plans to raise local investment and add production lines in Indonesia to build a wider cross-border manufacturing network.

Why now? The company has steadily diversified its production bases in recent years, extending from China to Vietnam and now toward Indonesia. Market observers note the strategy aligns with clients' supply chain demands while cutting exposure to geopolitical tension and tariff swings.

The bank's angle: Bank SinoPac said its outstanding syndicated loan balance topped US$11B as of July, up more than 20% year-over-year. It has also arranged sustainability-linked loans for clients including Vietjet AirDealroom has a profile for this one. Try Dealroom → and nylon producer Chain Yarn.

The signal: The loan underscores how Asian manufacturers are financing a "China-plus" footprint across Southeast Asia to hedge trade risk. For Taiwan's banks, syndicated lending to globalising suppliers is proving a growth engine.

Read more: finance.biggo.com

Image credit: Generated with Gemini