UPDATE 1-Innolux seeks $1.5 bln loan for LCD expansion-sources

* Largest loan arranged in Taiwan since Lehman collapse

* To help boost capacity in six-generation LCD plant (Adds details)

TAIPEI, Nov 11 (Reuters) - Innolux Display (3481.TW), the world's No.2 LCD monitor maker, is set to sign a T$48 billion ($1.5 billion) syndicated loan with 19 banks next Tuesday, two sources with knowledge of the deal told Reuters on Wednesday. The five-year loan is the largest arranged in Taiwan since the collapse of Lehman Brothers late last year, and is spilt into two tranches -- T$17 billion for working capital and the remaining T$31 billion for buying new machines and equipment to expand its LCD plant using six-generation technology, one of the sources said.

Monthly capacity at the plant could more than double to 120,000 units by the end of next year, helping Innolux overtake Hong Kong-listed TPV (0903.HK) to become the world's largest LCD monitor maker soon, the second source said.

Innolux produces LCD panels and also assembles monitors for top PC brands, such as Dell (DELL.O) and Hewlett-Packard (HPQ.N).

Both sources declined to be named because they were not authorised to speak publicly about the matter.

Mega International Commercial Bank will be among the leading lenders, the two sources said.

Other major LCD makers in Taiwan, including AU Optronics (2409.TW) and Chi Mei Optoelectronics (3009.TW), are also benefiting from growing demand for new PC monitors and flat-screen TVs.

Chi Mei signed a T$40 billion loan with 17 banks for working capital in September. (US$1=T$32.4) (Reporting by Baker Li and Stephanie Tong, Editing by Jacqueline Wong)