Taiwan's UMC prices $1.8 billion convertible bond sale (updated)

United Microelectronics

05/10/2026 08:06

Updates with company's filings throughout
By Yantoultra Ngui
HONG KONG, Oct 5 (Reuters) - Taiwan chipmaker United Microelectronics Corp 2303.TW, or UMC, has priced a $1.8 billion sale of zero-coupon convertible bonds, split equally between notes due in 2028 and 2031, a company filing showed on Monday.
The filing confirms an earlier Reuters report on Monday about the planned bond sale. UMC will issue the bonds on October 13 and will use the proceeds to buy machinery and equipment and build plant facilities, the filing showed.

UMC priced $900 million of bonds due in April 2028 and $900 million due in October 2031. The bonds pay no interest but can be converted into UMC shares.
The conversion prices were fixed at T$179.19 per share for the 2028 bonds and T$202.06 per share for the 2031 bonds. This compares with Monday's closing share price of T$152.50.
The 2028 bonds have an implied negative annual yield of 1.35%, while the 2031 bonds have an implied negative annual yield of 0.25%.
The dollar-denominated bonds will be linked to the Taiwan dollar but settled in US dollars.
The bonds will trade on the Singapore Exchange. UMC said full conversion of the bonds would dilute existing shareholders by about 2.34%.
Investors will have the option to require UMC to repurchase the 2031 bonds in 2027 or 2029.
Morgan Stanley MS.N and Citigroup C.N are joint global coordinators and bookrunners, while HSBC HSBA.L is also a bookrunner. 
($1 = 31.7750 Taiwan dollars)

 (Reporting by Yantoultra Ngui; Editing by Clarence Fernandez and Sherry Jacob-Phillips)
 ((Yantoultra.Ngui@thomsonreuters.com;))