TSMC to list $450 million green bonds on November 12

By Grace Kim

TAIPEI — TSMC has priced NT$14.8 billion (USD 450 million) of green bonds (debt earmarked for environmental projects) for listing on November 12.

Taiwan Semiconductor Manufacturing Co. confirmed completion of pricing in a statement filed with the Taiwan Stock Exchange on Tuesday. The company said: “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.”

The issue has two tranches:

• NT$12.4 billion (USD 377.77 million): five-year maturity, 2.30% coupon.
• NT$2.4 billion (USD 73.12 million): 10-year maturity, 2.42% coupon.

The five-year tranche accounts for most of the NT$14.8 billion total and carries the lower coupon. The 10-year tranche provides the longer maturity at 2.42%.

Use of proceeds:

• Green building initiatives.
• Environmental protection projects.

Taishin Securities Co. serves as lead underwriter, while Taipei Fubon Commercial Bank Co. acts as trustee.

What does the listing change for TSMC?

It advances a defined portion of TSMC's domestic borrowing plan into a project-specific debt issue, while leaving the aggregate authorization unchanged. Focus Taiwan reported: “At a board meeting in February, TSMC secured approval to issue up to NT$60 billion (USD 1.83 billion) worth of unsecured bonds in Taiwan this year to help fund production expansion and green projects.”

Unsecured bonds carry no collateral. The new securities pay fixed interest at the stated coupons and mature after five or 10 years. For TSMC, the proceeds create a dedicated environmental-funding channel inside a broader program that also supports production expansion.

TSMC has already obtained board approval and completed pricing; the November 12 listing moves the NT$14.8 billion issue onto the local market. Its proceeds remain tied to the stated environmental uses, while the broader authorization can support production expansion.

TSMC's existing green-bond book

Focus Taiwan, citing Taipei Exchange (TPEx), reported TSMC as Taiwan's top green bond issuer. Its outstanding green bonds totaled NT$229.1 billion (USD 6.98 billion), according to the report.

That total followed TSMC's first green bond issue of NT$12.0 billion (USD 365.58 million) in December 2020. TPEx operates the local over-the-counter (OTC) bond market, where TSMC will list the new bonds. Focus Taiwan described TSMC as the world's largest contract chipmaker.

AI funding context

Meta Platforms has announced plans to raise up to $95 billion in equity to fund AI expansion, including data centers, cloud computing and related infrastructure.

It launched concurrent underwritten public offerings of depositary shares (interests representing an underlying stock) and Class A common stock linked to forward sale agreements (contracts providing for later share issuance and settlement), targeting an initial $35 billion.

Meta also plans approximately $60 billion through a future at-the-market (ATM) offering; such sales place shares at prevailing market prices. That leg would follow commencement of trading in proposed Class C common stock and bring total planned fundraising to $95 billion.

Alphabet Inc., Google's parent company, separately announced plans to raise approximately $80 billion through equity offerings. The proceeds will finance AI computing infrastructure in response to what Alphabet described as unprecedented customer demand for AI services.

TSMC's transaction differs in form from the Meta and Alphabet plans: the chipmaker raises debt with a stated environmental use, while the two technology companies plan equity offerings for AI infrastructure. Within TSMC's program, the NT$14.8 billion deal provides two maturity points and a designated use of proceeds; the wider NT$60 billion authorization also supports production expansion.