TSMC to list NT$22.8 billion of green bonds on March 15

Taipei, March 11 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) is scheduled to list green bonds worth a total of NT$22.8 billion (US$7.26 billion) on the local over-the-counter (OTC) market on March 15, the Taipei Exchange (TPEx) said Monday.

The TPEx, which runs the local bond market, said the chipmaker will add its 20th round of green bonds on Friday.

Since 2020, the world's largest contract chipmaker has been keen to raise funds to finance environmentally friendly projects, and has sold NT$87.6 billion worth of green bonds in Taiwan since 2020, the TPEx said.

According to the TPEx, Taiwan's capital markets and financial authorities have promoted the use of green bonds to encourage companies to act in an environmentally responsible way.

TSMC said the proceeds from the bonds will be used to finance green architecture projects and related investments.

Market analysts said all of TSMC's 12-inch wafer fabs have secured the LEED certification, a globally recognized symbol of sustainability issued by the U.S. Green Building Council. The chipmaker's LEED certifications account for 42.8 percent of the total obtained by Taiwanese firms, analysts added.

The TPEx said at the end of last year that TSMC had obtained approval from the exchange to issue green bonds worth NT$34.3 billion in 2024. When the quota has been fulfilled, the company will be able to seek approval to sell more, the exchange added.

According to TSMC, the latest NT$22.8 billion of green bonds will be comprised of two tranches: NT$12.0 billion of 5-year bonds with a coupon rate of 1.64 percent, and NT$10.8 billion of 10-year bonds with a rate of 1.76 percent.

TSMC said Yuanta Securities served as the lead underwriter of the upcoming sale of green bonds.

The NT$22.8 billion of green bonds will be the first round of unsecured straight corporate bonds TSMC will sell 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 its green bond sale, TSMC was also the largest buyer of renewable electricity in Taiwan.

According to the TPEx, the value of the outstanding green bonds issued in Taiwan was NT$309.95 billion as of March 8. The first batch of green bonds was listed on the OTC market in 2017.