Taipower to sell NT$11.7 billion bonds in July

Taipower headquarters in Taipei.

TAIPEI (CNA) — The state-run Taiwan Power Co. (Taipower) said Wednesday that it will issue NT$11.7 billion (US$391 million) in unsecured straight bonds in July to finance its plans to increase electricity generation.

In a statement, Taipower said the bond issuance plan, which was approved at a board meeting Tuesday, will comprise three tranches.

The company said it will sell NT$4.7 billion of five-year bonds with a 0.55 percent coupon rate, NT$5.6 billion of seven-year bonds with a coupon rate of 0.60 percent, and NT$1.4 billion of 10-year bonds with a 0.66 percent coupon rate.

The proceeds from the bond sale will be used to install new generators at Taipower’s natural gas-fired Datan Power plant in Taoyuan, expand its coal-fired Linkou Power Plant in New Taipei, and improve its power transmission equipment, it said.

The launch of the bond sale in July will be Taipower’s third this year, after a NT$20.5 billion sale in April and a NT$15.2 billion issuance scheduled for mid-June.