Taipei:Taiwan Semiconductor Manufacturing Co. (TSMC) is set to list NT$14.8 billion (approximately US$450 million) in green bonds on November 12, as announced by the Taipei Exchange (TPEx).
According to Focus Taiwan, TSMC has been a leading issuer in the green bond market since issuing its first batch of NT$12.0 billion in December 2020. The company's total outstanding green bonds now amount to NT$229.1 billion, making it the largest green bond issuer in Taiwan. Additionally, TSMC is recognized as the largest consumer of renewable energy in the country.
TSMC revealed that the green bonds will be available in two tranches NT$12.4 billion in five-year bonds with a coupon rate of 2.30 percent, and NT$2.4 billion in 10-year bonds with a rate of 2.42 percent. Taishin Securities Co. has been appointed as the primary underwriter for the bond sale, while Taipei Fubon Commercial Bank Co. will serve as the trustee.
The proceeds from these green bond sales are earmarked for investments in green architecture and environmental protection initiatives. Earlier this year, TSMC's board approved the issuance of up to NT$60 billion in unsecured bonds in Taiwan to support its production expansion and other green projects. The NT$14.8 billion issuance is part of this planned NT$60 billion bond sales for 2026 and marks the third such sale this year.
Taiwan's financial authorities have been actively promoting the issuance of green bonds to encourage environmentally responsible practices among enterprises. Since the introduction of green bonds to the over-the-counter market in May 2017, the outstanding value of such bonds in Taiwan has reached NT$604.8 billion. Green bonds represent over 70 percent of the total NT$826.0 billion in the sustainability bond market, which also includes social, sustainability, and sustainability-linked bonds.
