TSMC to issue NT$18.4 billion green bonds

Taipei, May 13 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) has decided to issue NT$18.4 billion (US$584 million) in unsecured corporate bonds in the form of "green bonds" to finance spending on green architecture and environmental protection projects.

In a statement issued on Wednesday, TSMC said that the corporate bonds will be made up of two tranches: NT$13.7 billion of five-year bonds with a coupon rate of 1.8 percent, and NT$4.7 billion of 10-year bonds with a rate of 1.85 percent.

The chipmaker said KGI Securities has been hired as the major underwriter of the upcoming green bond sale.

At a board meeting held in February, TSMC secured approval to issue up to NT$60 billion worth of unsecured bonds in Taiwan this year to meet the demand for funds needed for production expansion and green projects.

The upcoming NT$18.4 billion green bond issue is the second tranche of the NT$60 billion after the first tranche of NT$17.2 billion in the form of ordinary unsecured bonds issued in March.

The Taipei Exchange (TPEx), which runs the bond market in Taiwan, said TSMC's green bonds are scheduled to list on the over-the-counter market on May 22.

According to the TPEx, the company has issued NT$195.0 billion in green bonds since 2020 and is currently the largest green bond issuer in Taiwan.

The company is also the biggest buyer of renewable energy in the country.

Taiwan's capital markets and financial authorities have promoted the use of green bonds to encourage environmentally responsible corporate behavior.

According to the TPEx, the value of outstanding green bonds issued in Taiwan is NT$555.3 billion. The first batch of such bonds was listed on the OTC market in 2017.