THRC floats possibility of share sale

Taiwan High Speed Rail Corp (THRC, 台灣高鐵), which sold shares to government foundations last September after at least three failed attempts at private sales, said that it may seek to sell shares again as it nears completion of the railway line.

The company's project to build a high speed rail link between Taipei and Kaohsiung has slipped a year behind schedule, while costs have risen around 20 percent to NT$480 billion (US$14.8 billion).

Taiwan High Speed is already seeking a NT$65.5 billion loan to help complete the project, said Ted Chia (賈先德), a spokesman for the rail company. It may also sell shares to fund operations, which are expected to begin in October.

``We will complete the loan first and may sell new shares around our commencement day depending on how the financial markets are,'' Chia said, without providing any further details.

Taipei Fubon Commercial Bank (台北富邦銀行), Fuhwa Commercial Bank (復華銀行), Taishin International Bank (台新銀行) and Ta Chong Bank Co (大眾銀行) are arranging the NT$65.5 billion loan, Chia said yesterday.

He declined to comment on when the deal may be signed.

The rail line was 95 percent complete at the end of April. Taiwan High Speed delayed commencing services last year because the installation of mechanical and electrical systems had fallen behind schedule, it said on Sept. 8 last year.