TSMC to list NT$11.5 billion of green bonds: TPEx

Taipei, May 13 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) will list NT$11.5 billion (US$355 million) in green bonds on the over-the-counter (OTC) market on Friday, according to the Taipei Exchange (TPEx).

The TPEx, which operates the local OTC market, said Monday it will be TSMC's second listing of green bonds so far this year, after putting NT$22.8 billion in green bonds on the market on March 15.

The March listing brought the total amount of green bonds sold by TSMC to date to NT$110.4 billion since it issued its first round of NT$12.0 billion in green bonds in December 2020, reflecting TSMC's interest in raising funds to finance eco-friendly projects, the TPEx said.

TSMC said it will use the proceeds from the upcoming green bond sale to finance spending on green architecture projects and other environmental protection plans.

According to TSMC, the unsecured NT$11.5 billion green bond sale, which its board of directors approved last week, will consist of two tranches: a five-year NT$4.9 billion issuance with a coupon rate of 1.94 percent, and a 10-year NT$6.6 billion issuance with a coupon rate of 2.1 percent.

KGI Securities has been hired as the lead underwriter of the upcoming sale, the company said.

Once the new bonds are issued, TSMC will reach its quota of NT$34.3 billion in green bonds it secured from the exchange for 2024, but the TPEx said TSMC can apply for an additional quota to issue more green bonds later this year.

TSMC issued green bonds worth NT$40 billion last year, accounting for 46.7 percent of the corporate bonds sold by the chipmaker in 2023.

In addition to the green bond sales, TSMC is also the largest green power buyer in Taiwan.

According to the TPEx, the value of the outstanding green bonds issued in Taiwan was NT$344.3 billion as of Monday. The first batch of green bonds was listed on the OTC market in 2017.