TSMC to Issue NT$6.1 billion in Green Bonds, Second Time This Year

Taiwan Semiconductor Manufacturing Co. (2330-TW) (TSM-US) announced on Wednesday (May 11) the terms of its third unsecured general corporate bond (green bonds) issue this year. This is the second time this year that the world’s largest contract chipmaker has issued green bonds with a total amount of NT$6.1 billion for capital expenditures related to green buildings and environmental protection. 

The bond has a 5-year term. The issue amount is NT$6.1 billion, with a fixed interest rate of 1.5% per annum. TSMC has reportedly appointed a securities underwriter to underwrite the issue through a negotiated sale. 

TSMC issued green bonds for the first time this year in January, totaling NT$5.4 billion, divided into Class A and Class B, each with a 5-year and 7-year maturity and fixed annual interest rates of 0.63% and 0.72%, respectively. 

TSMC’s board of directors approved the issuance of unsecured general corporate bonds in February of this year, after completing the pricing of the third tranche of corporate bonds (green bonds) this year.