TSMC to sell NT$6.1 billion in green bonds

Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, announced plans Wednesday to sell NT$6.1 billion (US$205 million) in unsecured corporate green bonds to finance environmentally friendly projects in construction and other areas.

The NT$6.1 billion worth of green bonds, with a face value of NT$10 million, will carry a maturity of five years with a coupon rate of 1.5 percent, TSMC said.

The chipmaker said it has entrusted Capital Securities as the main underwriter for the issuance, but did not say when the sale would happen.

A TSMC board meeting in mid-February approved plans to issue up to NT$60 billion in unsecured bonds in Taiwan to finance expansion and pollution-control initiatives.

The NT$6.1 billion corporate bonds will be the third tranche of green bonds sold by TSMC this year.

According to the Taipei Exchange, which operates the local bond market, TSMC sold a total of NT$5.4 billion in green bonds so far this year after the sales of three tranches of green bonds worth NT$12 billion.

Green bonds, promoted by Taiwan's capital markets and financial authorities, are aimed at encouraging companies to act in an environmentally responsible way, with the proceeds going to environmentally friendly projects.

Employee share purchase plan

In addition to the sales of green bonds, TSMC also served as the largest buyer of green power in Taiwan, purchasing almost all the renewables-generated electricity produced in the country.

On Tuesday, TSMC's board members approved the company's Global Employee Stock Purchase Plan, in which the chipmaker will offer subsidies to the employees of TSMC and its wholly owned subsidiaries to buy the company's shares on a monthly basis, starting from October.

Under the plan, TSMC will offer subsidies, which will account for 15 percent of the share purchases by its employees, while TSMC's employees and the employees of the chipmaker's subsidiaries will assign 20 percent and 15 percent, respectively, from their monthly wages to finance the remaining 85 percent of their share purchases.

TSMC said the share purchase plan aims to allow its employees worldwide to share the long-term achievements of the company.

Cash dividend in Q1

In addition, the Tuesday board meeting also approved a proposal for TSMC to issue NT$2.75 in cash dividend per share for the chipmaker's net profit of NT$202.73 billion or NT$7.82 per share recorded in the first quarter, which is a quarterly record high of net income in the company's history on the back of solid demand for its advanced technologies.

TSMC said the ex-dividend date for the common shares is scheduled for Sept.15, while the planned cash dividends are set to be issued to shareholders on Oct. 13.

TSMC approved a proposal in 2018 to issue cash dividends on a quarterly basis starting in 2019, instead of an annual basis, making it the first company listed on Taiwan's stock market to do so.

Due to the upcoming cash dividend payment, TSMC Chairman Mark Liu (???), who owns 12.91 million TSMC shares, is expected to pocket NT$35.51 million, while C.C. Wei (???), TSMC's CEO, is expected to receive NT$16.16 million for his ownership of 5.87 million shares.

In addition, the National Development Fund of the Executive Yuan, which is the largest shareholder of TSMC and owns 1.65 billion shares of the company, is expected to be paid about NT$4.55 billion in cash dividends.

Source: Focus Taiwan News Channel