Taipower to issue NT$17.1 billion in bonds

Taipei, Taiwan Power Co. (Taipower), the stateowned electricity supplier, is scheduled to issue NT$17.1 billion (US$546 million) in unsecured corporate bonds in September, which will be the third batch of its kind so far this year.

In a statement, Taipower said the funds to be raised from the corporate bond sale will help the company boost its coffers to finance several electricity development projects, such as an expansion of the coalfired Linkou Power Plant in New Taipei and an upgrade of its coalfired Dalin Power Plant in Kaohsiung.

According to Taipower, its Linkou Power Plant will have three generators added with a capacity of 800,000 kilowatts each, while the Dalin Power Plant will have two generators installed, also with a capacity of 800,000 kw each.

The expansion of the Linkou Power Plant and the Dalin Power Plant is expected to cost Taipower NT$152.4 billion and NT$104 billion, respectively, the power supplier said.

Taipower said that a board meeting held Thursday approved the fund raising activity expected for midSeptember, but no exact timeframe for the bond issuance was immediately available.

The NT$17.1 billion in corporate bonds will be comprised of three tranches: NT$3.4 billion with a maturity of five years, with an interest rate of 0.72 percent; NT$7.3 billion with a maturity of seven years, with an interest rate of 0.80 percent; and NT$6.4 billion with a maturity of 10 years, with an interest rate of 0.85 percent, Taipower said.

The interest rates will stay little changed from the interest rates set by the second tranche of NT$19.2 billion in unsecured corporate bonds issued in July, also for funds to finance the Linkou Power Plant and Dalin Power Plant expansion.

Market analysts said the interest rates stayed low amid escalating trade friction between the United States and China, which has dampened the willingness among enterprises to raise funds.

In April, Taipower issued NT$19.1 billion in unsecured corporate bonds. So far this year, it has never issued any green bonds. The company issued green bonds in 2017 and 2018,

Taipower said that since funds raised from the sale of green bonds will have to be used for renewable energy development, the company will consider the purpose of the upcoming fundraising to decide whether any more green bonds will be sold in the second half of this year.

Proceeds from the two batches of green bonds issued by Taipower were used in a wide range of green power developments, including offshore wind power, solar energy and hydroelectric power generation projects.

Source: Focus Taiwan News Channel