TSMC to list USD 450 million green bonds on November 12 to fund environmental projects

As per TPEx, which runs local bond listings on the over-the-counter (OTC) market, since the world's largest contract chipmaker issued its first batch of green bonds worth NT$12.0 billion (USD 365.58 million) in December 2020, its outstanding green bonds have totaled NT$229.1 billion (USD 6.98 billion), making the company the top green bond issuer in Taiwan, Focus Taiwan noted.

In a statement filed with the Taiwan Stock Exchange on Tuesday, TSMC confirmed that it had completed pricing for its latest green bond issuance worth NT$14.8 billion, it noted.

"The NT$14.8 billion green bond issue is part of the planned NT$60 billion bond sales for 2026 and the third such sale this year," the report said.

According to the report, the green bond issuance will comprise two tranches, including NT$12.4 billion (USD 377.77 million) in five-year bonds carrying a coupon rate of 2.30 per cent and NT$2.4 billion (USD 73.12 million) in 10-year bonds offering a coupon rate of 2.42 per cent.

TSMC has appointed Taishin Securities Co. as the lead underwriter for the issuance, while Taipei Fubon Commercial Bank Co. will act as the trustee.

The company said proceeds from the bond issuance would be utilised to finance green building initiatives and environmental protection projects, it noted.

"At a board meeting in February, TSMC secured approval to issue up to NT$60 billion (USD 1.83 billion) worth of unsecured bonds in Taiwan this year to help fund production expansion and green projects," Focus Taiwan added.

In recent times, several companies operating in the artificial intelligence (AI) sector have been raising funds to support their expansion and infrastructure requirements.

Recently, Meta Platforms announced plans to raise up to USD 95 billion in equity to fund its AI expansion, including investments in data centres, cloud computing and related infrastructure.

As part of the fundraising plan, the company has launched concurrent underwritten public offerings of depositary shares and Class A common stock linked to forward sale agreements, targeting an initial USD 35 billion.

Additionally, Meta announced to raise approximately USD 60 billion through a future at-the-market offering following the commencement of trading in its proposed Class C common stock, taking the total planned fundraising to USD 95 billion.

Similarly, Google's parent company Alphabet Inc., announced to raise approximately USD 80 billion through equity offerings to finance investments in its artificial intelligence (AI) computing infrastructure amid unprecedented customer demand for AI services. (ANI)