TSMC to List $450 Million Green Bonds on November 12

TSMC will list NT$14.8 billion (USD 450 million) in green bonds on the Taipei Exchange on November 12, the exchange said, extending its position as Taiwan's largest green bond issuer.

The world's largest contract chipmaker confirmed the pricing in a statement filed with the Taiwan Stock Exchange on Tuesday. The company has appointed Taishin Securities as lead underwriter. Taipei Fubon Commercial Bank will act as trustee.

The deal forms part of a planned NT$60 billion bond program for 2026 and marks the third such sale this year, according to Focus Taiwan, citing the Taipei Exchange (TPEx), which runs bond listings on the over-the-counter market.

What are the terms of the two tranches?

The issuance splits into two tranches with different maturities and coupons.

• NT$12.4 billion (USD 377.77 million) in five-year bonds at a coupon rate of 2.30 percent
• NT$2.4 billion (USD 73.12 million) in 10-year bonds at a coupon rate of 2.42 percent

TSMC said proceeds will finance green building initiatives and environmental protection projects. The company has not detailed which facilities the funds will support.

How large is TSMC's green bond program?

The track record is substantial. TSMC issued its first batch of green bonds, worth NT$12.0 billion (USD 365.58 million), in December 2020.

Since then, its outstanding green bonds have totaled NT$229.1 billion (USD 6.98 billion), according to TPEx. That figure makes TSMC the top green bond issuer in Taiwan, the exchange said.

The February board approval set the ceiling. At a board meeting that month, TSMC secured approval to issue up to NT$60 billion (USD 1.83 billion) worth of unsecured bonds in Taiwan this year. The funds will help finance production expansion and green projects.

Why are tech companies raising record sums?

TSMC's debt sale lands amid a broader capital-raising wave across the artificial intelligence sector. Companies are tapping equity and debt markets to fund data centers, cloud computing capacity and related infrastructure.

Meta Platforms announced plans to raise up to USD 95 billion in equity to fund its AI expansion. The plan includes investments in data centers, cloud computing and related infrastructure.

Meta's structure has two legs:

• Concurrent underwritten public offerings of depositary shares and Class A common stock linked to forward sale agreements, targeting an initial USD 35 billion
• Approximately USD 60 billion through a future at-the-market offering, to begin after trading starts in its proposed Class C common stock

Alphabet, Google's parent company, is moving on a similar scale. The company announced plans to raise approximately USD 80 billion through equity offerings. The proceeds will finance investments in AI computing infrastructure, which Alphabet says faces unprecedented customer demand for AI services.

What comes next for TSMC's financing?

The November 12 listing will add NT$14.8 billion to a green bond program that has already reached NT$229.1 billion outstanding, and further issuance remains possible under the board-approved NT$60 billion plan for the year as TSMC funds both capacity expansion and its environmental commitments.