Taiwan Power Co (Taipower, 台電), the nation’s biggest electricity producer, increased the number of bonds it sold at auction by almost 50 percent after demand exceeded the debt offered.
The state-run utility sold NT$17.9 billion (US$564 million) of bonds in four tranches, compared with a planned NT$12 billion, Clint Chou (周義岳), a company spokesman, said by phone yesterday.
The auction attracted total bids of NT$34.7 billion, according to an e-mailed statement.
“It’s not a surprise the company sold this much, as it’s a state-owned company, and risk for the debt is low,” said Kemp Huang, a bond broker at Capital Securities Corp (群益證券).
The proceeds from the auction will be used to fund NT$160 billion of planned upgrades, construction of power plants and transmission lines this year, Chou said.
The company has a twAAA debt rating, the highest from Taiwan Ratings Corp (中華信評), a Standard & Poor’s venture.
The company sold NT$4.4 billion of three-year notes, NT$3 billion of five-year bonds, NT$4.5 billion of seven-year securities and NT$6 billion of 10-year debt, Taipower said in the statement.
The three-year notes priced yesterday will pay an annual interest of 1.08 percent, the five-year bonds 1.38 percent, the seven-year debt 1.75 percent and the 10-year securities 1.85 percent, the company said.
The securities will be guaranteed by Shanghai Commercial & Savings Bank (上海商銀), based in Taipei, and state-controlled Mega International Commercial Bank (兆豐國際商銀). Yuanta Securities Co (元大證券), also Taipei-based, is the main underwriter.
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