Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, is to issue NT$13.9 billion (US$469.5 million) in unsecured bonds to help fund its plan to expand production capacity, it said on Friday.
In a Taiwan Stock Exchange filing, TSMC said the bonds would comprise three tranches: NT$5.7 billion payable over five years, NT$6.3 billion over seven years and NT$1.9 billion over 10 years.
The interest rates would be 0.58 percent on the five-year bonds, 0.65 percent on the seven-year ones and 0.67 percent on the 10-year tranche, TSMC said.
Capital Securities Corp (群益金鼎證券) is to serve as the main underwriter in the bond sale, TSMC said, without disclosing when it would issue the bonds.
If launched by the end of the month, as analysts have predicted, the unsecured bond sale would be TSMC’s second this year.
In the first half of the year, TSMC sold NT$60 billion in unsecured bonds, which it said it would use to finance the expansion of its 5-nanometer wafer plant in the Southern Taiwan Science Park (南部科學園區) in Tainan.
As part of its business expansion plan, the chipmaker said it plans to issue another NT$60 billion in bonds in the second half of the year, which includes the NT$13.9 billion issuance announced on Friday.
TSMC as of the end of March had NT$430.78 billion in cash and cash equivalents, compared with NT$455.40 billion at the end of last year, according to Taiwan Stock Exchange data.
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