Taiwan Semiconductor Manufacturing Co. (TSMC) is scheduled to list NT$14.8
billion (US$450 million) in green bonds on Nov. 12, the Taipei Exchange
(TPEx) said Wednesday.

According to the TPEx, which runs local bond listings on the over-the-counter
(OTC) market, since the world's largest contract chipmaker issued its first
batch of green bonds worth NT$12.0 billion in December 2020, its outstanding
green bonds have totaled NT$229.1 billion, making the company the top green
bond issuer in Taiwan.

TSMC is also known as the largest buyer of renewable energy in Taiwan.

In a statement posted Tuesday on the Taiwan Stock Exchange, where its shares
are traded, TSMC said it had completed pricing for the NT$14.8 billion green
bond issue.

TSMC said the green bonds will be made up of two tranches: NT$12.4 billion of
five-year bonds with a coupon rate of 2.30 percent, and NT$2.4 billion of
10-year bonds with a rate of 2.42 percent.

TSMC said Taishin Securities Co. has been hired as the major underwriter of
the upcoming green bond sale, with Taipei Fubon Commercial Bank Co. serving
as the trustee.

It added that the proceeds of the upcoming green bond sales will be used to
finance spending on green architecture and environmental protection projects.

At a board meeting in February, TSMC secured approval to issue up to NT$60
billion worth of unsecured bonds in Taiwan this year to help fund production
expansion and green projects.

The NT$14.8 billion green bond issue is part of the planned NT$60 billion
bond sales for 2026 and the third such sale this year.

Taiwan's capital markets and financial authorities have intensified efforts
to encourage enterprises to issue green bonds to enhance their
environmentally responsible corporate behavior.

According to the TPEx, the value of outstanding green bonds issued in Taiwan
currently stands at NT$604.8 billion after the first batch of such bonds was
listed on the OTC market in May 2017.

In Taiwan, green bonds are listed on the sustainability bond market along
with social bonds, sustainability bonds and sustainability-linked bonds.

Green bonds currently account for over 70 percent of the total outstanding
value of NT$826.0 billion on the sustainability bond market, according to the
TPEx.