UMC board resolves to issue up to US$1.8 billion 7th Unsecured Overseas Convertible Bonds
United Microelectronics Corporation's board of directors on August 26, 2026 resolved to issue the 7th Unsecured Overseas Convertible Bonds in an aggregate amount of up to US$1.8 billion, to be offered outside the Republic of China and split into tranche A and tranche B at the Chairman's discretion. The bonds are tentatively priced at 100% of face value with a 0% coupon and a maturity of no more than five years, subject to approval by Taiwan's Securities and Futures Bureau, Financial Supervisory Commission. Net p...
Key takeaways
Board approved up to US$1.8 billion 7th Unsecured Overseas Convertible Bonds (tranche A plus tranche B together, including any over-subscription).
Tentative indicative terms: 0% coupon, 100% of face value issue price, US$200,000 denomination (integral multiples of US$100,000 above), maturity of no more than five years.
Use of proceeds is purchasing machinery, equipment and facility, aligning with UMC's raised FY 2026 CAPEX guidance of US$2.0 billion (up from US$1.5 billion).
Tranche selection (A, B, or a combination) and material terms, including conversion price, redemption, sell-back and put conditions, are delegated to the UMC Chairman or his designee based on market conditions.
Bonds are unsecured (no collateral) and will be publicly offered outside the Republic of China in accordance with local regulations and international market practice.
Issuance is subject to approval by Taiwan's Securities and Futures Bureau, Financial Supervisory Commission; trustee, underwriter and principal/interest paying agent are listed as to be determined.
A further announcement will follow when material terms are finalized; conversion premium (and potential dilution) has not been disclosed.
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