ams OSRAM signs close to EUR 450 million of infrastructure related asset transactions

ams OSRAM signed Sale and Leaseback agreements totaling up to Malaysian Ringgit 2 billion (approximately EUR 400 million) in gross proceeds (“Lease Financing”).

The Sale and Leaseback transaction is part of the previously announced financing plan and limited to the newly constructed Kulim 8-inch semiconductor facility’s primary and secondary structures.

On September 27, 2023 ams OSRAM announced its financing plan of EUR 2.25 billion, with around EUR 1.9 billion expected to be financed in the coming months comprising of EUR 800 million capital raise, around EUR 800 million in new senior bond issuances and around EUR 300 million asset-level transactions. These asset-level transactions are now expected to yield close to EUR 450 million in proceeds. The Kulim 8-inch facility Sale and Leaseback transaction is the key element amongst these asset-level transactions.

In 2022, ams OSRAM started an approximately EUR 1 billion investment in manufacturing, facilities and R&D for state-of-the-art LED and microLED. The new facility in Kulim is expected to be the world’s first fully automated 8-inch LED manufacturing facility. The facility shows the company’s dedication to sustainability, featuring highly energy and cost efficient green building practices in compliance with the LEED green building standards. The certification process is in progress, with the goal of becoming the first LEED GOLD certified semiconductor front-end facility in Malaysia, enabling the production of future generations of cutting-edge products.