Taiwan Power Co (Taipower, 台電) auctioned NT$13 billion (US$394.4 million) in corporate bonds yesterday, the company’s second bond issuance this year after it sold NT$7 billion in bonds in April.
The state-run company said it will use the proceeds for routine capital expenditures, which include renewing existing facilities, building new power generators, factories and transmission lines.
It will issue three tranches of secured debentures worth NT$3.9 billion, NT$6.5 billion and NT$2.6 billion.
Based on results of the auction, it sold the three-year bonds with a yield of 0.97 percent, five-year bonds with a yield of 1.43 percent and seven-year bonds with a yield of 1.70 percent.
“The yields for this second issuance are lower compared with those for the first issuance because of macroeconomic conditions. There is less demand for capital this year, so we probably won’t raise as much as we did last year,” a Taipower official told the Taipei Times over the telephone.
Taipower issued NT$3.89 billion in five-year bonds in its April offering, with a yield of 1.61 percent, and NT$3.1 billion in seven-year bonds with a yield of 1.8 percent.
Last year, the company had eight corporate bond offerings in total, raising between NT$50 billion and NT$60 billion.
Fubon Securities Co (富邦證券) is serving as guarantor for the latest bond issuance, while KGI Securities Co (凱基證券) is the lead underwriter.
The new bonds will be sold to the public next month, Taipower said.