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TSMC Issues $584M Green Bonds to Boost Environmental Projects

TSMC has decided to issue NT$18.4 billion in unsecured corporate green bonds to finance green architecture and environmental protection projects. The issuance includes NT$13.7 billion in five-year bonds with a 1.8% coupon rate and NT$4.7 billion in 10-year bonds with a 1.85% rate. This is the second tranche of a NT$60 billion authorization approved in February, following a March issuance of NT$17.2 billion in ordinary bonds. Since 2020, TSMC has issued NT$195 billion in green bonds, making it the largest green bond issuer in Taiwan.

Key Points: TSMC Issues $584M Green Bonds for Eco Projects

  • TSMC issues NT$18.4B in green bonds
  • Bonds split into 5-year and 10-year tranches
  • Funds for green architecture and environmental projects
  • TSMC is largest green bond issuer in Taiwan
  • Follows earlier NT$17.2B bond issuance in March
2 min read

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

TSMC issues NT$18.4 billion in green bonds to fund green architecture and environmental protection, marking its largest green bond issuance in Taiwan.

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

Taipei, May 14

Taiwan Semiconductor Manufacturing Co. has decided to issue NT$18.4 billion in unsecured corporate bonds in the form of "green bonds" to finance spending on green architecture and environmental protection 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

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Reader Comments

P
Priya S
Impressive! NT$195 billion in green bonds since 2020 shows real commitment. Wish Indian companies would follow this path more aggressively. Our environment needs all the support it can get. 🌱
S
Siddharth J
While I appreciate the green initiative, I hope these bonds genuinely fund impactful projects and not just greenwashing. TSMC must ensure transparency in how the NT$18.4 billion is spent. Indian SEBI regulations on green bonds could learn from Taiwan's approach.
J
Jennifer L
Interesting to see TSMC using green bonds for both expansion and environmental protection. That balance is crucial. I hope this sets a trend for semiconductor companies worldwide, including any future fabs in India.
N
Nikhil C
Taiwan's capital markets are really pushing green bonds. 1.8% coupon rate for 5-year bonds is quite attractive for investors too. A win-win for TSMC and the environment. Hope Indian companies in IT and manufacturing take inspiration.
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David E
TSMC being both the largest green bond issuer and biggest renewable energy buyer in Taiwan is commendable. The OTC listing on May 22 will be a milestone. This is exactly the kind of corporate leadership we need in climate action globally.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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