Taipei: Delta Electronics Inc. announced plans to issue more than US$500 million worth of overseas exchangeable bonds through its Thai subsidiary. The Taiwanese power management solution provider aims to enhance its working capital to support current business operations and future expansion.

According to Focus Taiwan, a recent board meeting of Delta International Holding (DIH), a subsidiary of Delta Electronics, approved the plan to sell US$525 million in overseas exchangeable bonds. The bonds, with a face value of US$200,000 and a zero coupon rate, are set to mature on January 21, 2030. They will be exchangeable into shares of Delta Electronics (Thailand) Public Co. Ltd. at a conversion price of 187.6 Thai baht, reflecting a 40 percent premium over a reference price.

Bondholders will initially have the right to receive 37,086.3539 shares of Delta Thailand for each US$200,000 principal amount, with adjustments possible as per the bond terms. Additionally, bondholders can require DIH to redeem their bonds at 106.31 percent of the principal amount in the third year after issuance.

Delta Electronics is focusing on expanding its global production, research, development, and sales capabilities to tap into opportunities in artificial intelligence, smart manufacturing, electric vehicles, and energy-saving solutions. The bond sale aims to optimize DIH's working capital efficiency and bolster the company's expansion in regions such as Thailand, India, Japan, and Europe.

In 2024, Delta Electronics achieved a record high in consolidated sales, reaching NT$421.15 billion (US$12.77 billion), marking a 4.9 percent increase from the previous year. December alone saw consolidated sales of NT$38.74 billion, the second-highest level following October's NT$38.82 billion. The power management division led with 48 percent of total sales, followed by infrastructure at 32 percent, automation at 13 percent, and transportation at 7 percent.

Delta Electronics shares rebounded on the Taiwan Stock Exchange, rising 2.50 percent to close at NT$410.00, recovering from a 4.76 percent decline in the previous session.