TSMC to issue USD 584 million in green bonds for environmental projects

According to a report by Focus Taiwan, the issuance consists of two separate tranches designed to provide varying maturity options for investors.

In a statement issued on Wednesday, TSMC said that the NT$13.7 billion (approx. USD 435 million) of five-year bonds will have a coupon rate of 1.8 per cent, and NT$4.7 billion (approx. USD 149 million) of 10-year bonds will have a rate of 1.85 per cent.

The report mentioned that KGI Securities has been hired as the major underwriter of the upcoming green bond sale. This move aligns with a decision from a board meeting held in February, where TSMC secured approval to issue up to NT$60 billion (approx. USD1.9 billion) worth of unsecured bonds in Taiwan throughout the current year.

The company designated these funds to meet the rising demand for capital needed for both production expansion and green projects.

The current NT$18.4 billion (approx. USD 585 million) issue represented the second tranche of that NT$60 billion (approx. USD 1.9 billion) total authorisation. This follows an earlier issuance in March, when the company released NT$17.2 billion (approx. USD 547 million) in the form of ordinary unsecured bonds.

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.

Citing TPEx, the report mentioned that TSMC has issued NT$195.0 billion (approx. USD 6.2 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 behaviour.

According to the report, the value of outstanding green bonds issued in Taiwan is NT$555.3 billion (approx. USD 17.6 billion). The first batch of such bonds was listed on the OTC market in 2017. (ANI)