TSMC Announces Significant Green Bond Issuance to Support Sustainable Initiatives

Leading Semiconductor Manufacturer to Invest Heavily in Renewable Energy and Green Projects through Bond Sale

A leading global semiconductor manufacturer has announced plans to issue a substantial amount of green bonds to finance its environmentally responsible initiatives. The company will issue the equivalent of approximately $582 million USD in green bonds.

The funds raised from this issuance, the first of this year, will be allocated to green architecture, renewable energy projects, and related investments. This reflects the company's ongoing commitment to sustainability and environmental stewardship.

Since 2020, the company has raised a significant amount through green bonds, solidifying its position as a leading issuer in this market. This latest issuance continues this trend.

The green bond sale will be structured in two tranches. The first tranche, valued at the equivalent of approximately $364 million USD, will be comprised of five-year bonds with a coupon rate of 1.9%. The second tranche, valued at approximately $218 million USD, will be comprised of ten-year bonds with a rate of 2.05%.

The upcoming green bond sale will be underwritten by a major financial institution.

Beyond being a significant issuer of green bonds, the company is also a major consumer of renewable energy, demonstrating its comprehensive approach to environmental responsibility.

A prior board meeting approved a plan to issue a larger amount of unsecured corporate bonds, with the green bond issuance being a portion of this broader fundraising effort. The broader plan aims to finance production expansion and anti-pollution projects.

This initiative aligns with the broader promotion of green bonds aimed at encouraging companies to adopt environmentally friendly practices. Capital markets and financial authorities actively support the use of green bonds.

The value of outstanding green bonds in this market has reached a significant level since the first issuance was listed on the OTC market several years ago.