SMIC Shanghai Receives $600 Million Funding

Semiconductor Manufacturing International Corporation (“SMIC”) (NYSE: SMI; SEHK: 0981) announced that its wholly-owned subsidiary, Semiconductor Manufacturing International (Shanghai) Corporation (“SMIC Shanghai”), has successfully closed the 5-year US$600 million secured term loan facility (the “Facility”) with a consortium of international and PRC banks.

ABN AMRO Bank N.V., Bank of China (Hong Kong) Limited, Bank of Communications, The Bank of Tokyo-Mitsubishi UFJ, Ltd., China Construction Bank, DBS Bank Ltd., Fubon Bank (Hong Kong) Limited, Industrial and Commercial Bank of China and Shanghai Pudong Development Bank were the coordinating arrangers and China Construction Bank acted as the facility and security agent for the Facility. The Facility is guaranteed by SMIC.

Dr. Richard R. Chang, Chief Executive Officer of SMIC, said, “This represents SMIC’s debut in the international syndicated loan markets and we are very pleased that we have received overwhelming support from a large number of international and PRC banks. In total, eighteen banks, including ten international and eight PRC banks from eight different countries/regions have participated in this Facility. This Facility, one of the largest syndicated loans closed in China so far this year, was significantly oversubscribed – having received a total commitment of close to US$850 million. This Facility will provide significant benefits to SMIC Shanghai and will support SMIC Shanghai’s future growth through improved loan pricing, more flexible loan covenants and extended maturity.”

Mr. Mike Netterfield, Managing Director, Co-head Technology Banking – Asia Pacific, ABN AMRO Bank N.V. said, “The success of this Facility reflects the positive view and confidence that the banking community has on SMIC and its future development as the largest semiconductor manufacturer in China. The Facility is the largest corporate syndicated loan in China so far this year.”

Mr. Stephen Ho, Managing Director and Head of Communications, Media & Technology, DBS Bank Ltd, said “We are very pleased to bring this deal to successful fruition. This syndication has attracted strong interest from a diversified group of domestic and international banks. We believe that this Facility has provided SMIC with greater financial flexibility for its future expansion.”

About SMIC
SMIC (NYSE:SMI; SEHK:981) is one of the leading semiconductor foundries in the world and the largest and most advanced foundry in Mainland China, providing integrated circuit (IC) manufacturing service at 0.35um to 90nm and finer line technologies. Headquartered in Shanghai, China, SMIC operates three 8-inch fabs in Shanghai and one in Tianjin, and one 12-inch fab in Beijing, the only one of its kind in Mainland China. SMIC has customer service and marketing offices in the U.S., Italy, and Japan as well as a representative office in Hong Kong.