Chunghwa Telecom Co’s (中華電信) board of directors yesterday approved a plan to raise up to NT$30 billion (US$1 billion) through its first-ever unsecured corporate bond issue.
The plan comes in the wake of the central bank on March 19 cutting its policy rate for the first time in four years by 0.25 percentage points, which has led to market rates moving lower and seen government bond yields continue to hit record lows.
In a regulatory filing, the nation’s largest telecom said the bonds would be issued in one or several tranches.
They would have a maturity of less than 10 years, with the proceeds being used for equipment construction, business expansion and replacement needs, Chunghwa Telecom said.
The company also plans to use the funds to finance future merger and acquisition deals and investment in other enterprises, as well as to strengthen its working capital and repay debt, it said.
In December last year, S&P Global Ratings affirmed its “AA” long-term issuer credit rating on Chunghwa Telecom.
Taiwan Ratings Corp (中華信評) also affirmed its “twAAA” long-term issuer credit rating, with a stable long-term outlook.
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