AAT World

TSMC to sell NT$6.1 billion in green bonds


Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, announced plans to sell NT$6.1 billion (US$205 million) in unsecured corporate green bonds to finance environmentally friendly projects in construction and other areas.

The NT$6.1 billion worth of green bonds, with a face value of NT$10 million, will carry a maturity of five years with a coupon rate of 1.5 percent, TSMC said.

The chipmaker said it has entrusted Capital Securities as the main underwriter for the issuance, but did not say when the sale would happen.

A TSMC board meeting in mid-February approved plans to issue up to NT$60 billion in unsecured bonds in Taiwan to finance expansion and pollution-control initiatives.

The NT$6.1 billion corporate bonds will be the third tranche of green bonds sold by TSMC this year.

According to the Taipei Exchange, which operates the local bond market, TSMC sold a total of NT$5.4 billion in green bonds so far this year after the sales of three tranches of green bonds worth NT$12 billion.

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 environmentally friendly projects.