TSMC to List NT$14.8 Billion in Green Bonds on Nov. 12
The bonds comprise five-year and 10-year tranches with coupon rates of 2.30% and 2.42%, marking TSMC's third related bond issuance this year.
Taiwan Semiconductor Manufacturing Co. (TSMC) will list NT$14.8 billion in green bonds on Nov. 12, with the proceeds expected to fund green building and environmental protection projects. The Taipei Exchange said TSMC has become Taiwan's largest corporate green bond issuer since it first issued green bonds in 2020.
According to a Nov. 4 report by the Central News Agency, TSMC's latest green bond issue totals NT$14.8 billion, or about US$450 million, and is divided into two maturities. NT$12.4 billion will be issued in five-year bonds with a 2.30% coupon rate, while the remaining NT$2.4 billion will comprise 10-year bonds with a 2.42% coupon rate.
TSMC said the proceeds will be used for green building and environmental protection projects. The company has appointed Taishin Securities as the lead underwriter, while Bank SinoPac will serve as the trustee.
The Taipei Exchange said TSMC first issued NT$12 billion in green bonds in December 2020. Its outstanding green bond balance has since reached NT$229.1 billion, the highest among Taiwanese companies. TSMC is also one of Taiwan's major purchasers of renewable energy.
The NT$14.8 billion green bond issue is part of TSMC's plan to issue up to NT$60 billion in unsecured bonds in 2026 and marks its third related bond issuance this year. The company previously said the bond proceeds would support capacity expansion, green investment and other purposes.
As demand for AI chips, advanced process technologies and data centers continues to grow, semiconductor manufacturing is facing rising requirements for electricity, water resources and environmental management. TSMC's use of green bonds to raise funds not only supports its environmental investments but also highlights the semiconductor industry's need to address energy efficiency and sustainability challenges alongside capacity expansion.
Data from the Taipei Exchange showed that Taiwan's green bonds currently in circulation total NT$604.8 billion, representing a significant share of the sustainable bond market.