TSMC to issue NT$5.4 billion in green bonds

Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, said Tuesday that it will issue NT$5.4 billion (US$196 million) in green bonds to fund green building construction and other eco-friendly projects.


The NT$5.4 billion in green bonds, the company’s first unsecured corporate bond sale this year, will comprise two tranches — a five-year NT$2.1 billion tranche with a coupon rate of 0.63 percent, and a seven-year NT$3.3 billion tranche carrying a coupon rate of 0.72 percent, according to TSMC.


Taipei Fubon Commercial Bank will be the depository institution for the green bonds, while Yuanta Securities will serve as the underwriter of the debt, said TSMC, which has not yet released a timetable for the sale.


Green bonds, promoted by Taiwan’s capital markets and financial authorities, are aimed at encouraging companies to act in an environmentally responsible way, with the proceeds going to eco-friendly projects, according to the Taipei Exchange, which runs the local bond market.


Source: Focus Taiwan News Channel

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