TSMC to list NT$19.2 billion green bonds on March 28: TPEx

Taipei, March 20 (CNA) Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) is scheduled to issue NT$19.2 billion (US$582 million) in green bonds on the local over-the-counter (OTC) market on March 28, the Taipei Exchange (TPEx) said Thursday.

TSMC said the NT$19.2 billion raised from the upcoming bond sale, its first this year, will finance green architecture and renewable energy projects and related investments.

According to TPEx, which operates the local OTC market, TSMC has raised NT$121.9 billion since 2020 to become the largest green bond issuer in Taiwan.

TSMC said that its latest sale of green bonds will be divided into two tranches: NT$12.0 billion of five-year bonds with a coupon rate of 1.9 percent, and NT$7.2 billion of 10-year bonds with a rate of 2.05 percent.

Yuanta Securities has been hired as the major underwriter of the upcoming green bond sale, TSMC added.

In addition to being the largest green bond issuer, TSMC is also the biggest buyer of renewable energy in Taiwan.

In mid-November 2024, a TSMC board meeting approved a plan to issue up to NT$60 billion worth of unsecured corporate bonds to finance production expansion and anti-pollution projects with the NT$19.2 billion green bond part of the bond sale quota.

Taiwan's capital markets and financial authorities have promoted the use of green bonds to encourage companies to act in an environmentally responsible way.

According to the TPEx, the value of the outstanding green bonds issued in Taiwan has hit NT$627.7 billion. The first batch of green bonds was listed on the OTC market in 2017.