September 28, 2012 / 6:28 AM / in 6 years

Cash-strapped Renesas secures $2.1 billion of syndicated loans

TOKYO (Reuters) - Cash-strapped Renesas Electronics Corp (6723.T) said it has secured 161 billion yen ($2.1 billion) in syndicated loans from four Japanese banks including Mizuho Corporate Bank Ltd and Bank of Tokyo-Mitsubishi UFJ Ltd to refinance its debts.

A receptionist passes by the logo of Renesas Electronics Corp at the company's headquarters in Tokyo July 3, 2012. REUTERS/Yuriko Nakao

The term of the loans is two-and-a-half years, the Japanese chipmaker said on Friday.

The world’s No.1 maker of microcontroller chips used in cars has been seeking financial support from banks and its main shareholders after posting a net loss in the last fiscal year, hit by a strong yen and fierce competition from rivals in South Korea.

Separately, Renesas said it secured an additional 97 billion yen from the four banks, as well as major shareholders Mitsubishi Electric Corp (6503.T), Hitachi Ltd (6501.T) and NEC Corp (6701.T).

As reported by Reuters in July, the money had been promised to Renesas.

The company is a result of the merger of the chip divisions of Mitsubishi, Hitachi and NEC.

Mizuho Corporate Bank is a unit of Mizuho Financial Group Inc (8411.T), while Bank of Tokyo-Mitsubishi is a unit of Mitsubishi UFJ Financial Group Inc (8306.T).

($1 = 77.6950 Japanese yen)

    Reporting by Junko Fujita; Editing by Ryan Woo

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