Bond sale to fetch NT$145bn
The government plans to auction NT$115 billion (US$3.9 billion) in bonds and NT$30 billion in treasury bills in the third quarter of this year to help repay debt and handle special funding needs, the Ministry of Finance (MOF) said in a statement on its Web site yesterday. The third-quarter sale of NT$145 billion in total bonds and treasury bills is 12.12 percent lower than the NT$165 billion debt the government sold in the second quarter. Apart from the regular five-year, 10-year and 20-year bonds to be issued each month in the next quarter, the ministry said it plans to sell NT$30 billion in 273-day treasury bills in August to help state coffers meet short-term capital needs. The ministry did not specify the total worth of bonds to be sold in the fourth quarter, saying only that there would be a total of four bond issues.
Synnex takes NT$14bn loan
Synnex Technology International Corp (聯強國際), the largest distributor of information, communications, consumer electronics and semiconductor products in the Asia-Pacific region, yesterday secured a syndicated loan of NT$14.4 billion from nine local banks led by Mega International Commercial Bank (兆豐銀行), the company said in a statement. It has been eight years since the company last received a syndicated loan, and banks have shown great interest in the deal with oversubscription by nearly two times, it said. Other banks included are Bank of Taiwan (臺灣銀行), Taiwan Cooperative Bank (合作金庫), Hua Nan Commercial Bank (華南銀行) and Taipei Fubon Bank (台北富邦銀行). The company is to use the loan to replenish its working capital in the medium term, it said. The loan is linked to three environmental, social and governance sustainability indicators, namely “total water consumption,” “total electricity consumption” and “satisfaction with home services,” it added.
TAIFEX payout approved
Shareholders of the Taiwan Futures Exchange (TAIFEX) yesterday approved the exchange’s proposal to distribute a dividend of NT$4.55 per share, including a cash dividend of NT$3.15 per share. At its annual general meeting in Taipei, TAIFEX told shareholders that Taiwan’s futures market registered a record-high trading volume of 392.2 million contracts last year, up 14.9 percent year-on-year, with an average daily volume of 1.61 million contracts. Foreign institutions accounted for 31.46 percent of the market volume as of the end of last year, a record high and up from 26.03 percent in 2020, it said. Thanks to rising trading volume amid greater market volatility and a stronger appetite for risk, the exchange reported net profit of NT$3.19 billion, or earnings per share of NT$7.59.
Shippers unite on new route
Container shippers Yang Ming Marine Transport Corp (陽明海運) and Wan Hai Lines Ltd (萬海航運) on Wednesday said they would team up with Singapore-based shipping company Pacific International Lines Pte Ltd to launch a new shipping route from China’s Ningbo to Latin America. The new service is to launch from July 13, as the shippers aim to meet rising market demand, they said in a joint statement. A fleet of 10 vessels apiece with a capacity from 3,000 twenty-foot equivalent units (TEU) to 4,250 TEUs would be used on the weekly service, Wan Hai said. A round trip would take 70 days, the statement said.
Semiconductor stocks on Friday took a beating after a grim profit warning from Idaho-based Micron Technology Inc sparked fresh worries about the US’ earnings power as the country is potentially heading for a recession. Despite a broader stock market rally, the Philadelphia Stock Exchange Semiconductor Index dropped 3.8 percent after Micron, the largest maker of memory semiconductors in the US, flagged that demand was cooling for chips used in computers and smartphones. The index — which is home to US chip giants Advanced Micro Devices Inc and Nvidia Corp, as well as Micron — is down 38 percent this year. Historically, semiconductor
WHOLLY OWNED SUBSIDIARY: Costco Wholesale said it expected the purchase of the remaining 45 percent stake to add 1 to 1.5 percent to its earnings per share US-based Costco Wholesale Corp on Thursday said that it had purchased the remaining 45 percent stake in Costco President Taiwan Inc (台灣好市多) for US$1.05 billion, making the local company a fully-owned unit. “We estimate that the purchase would add about 1 to 1.5 percent to [our] earnings per share,” Costco said in a statement. Costco President Taiwan was established as a joint venture with Kaohsiung-based President Group (大統集團), which held a 45 percent stake. Since the first Costco store opened in Kaohsiung in 1997, 14 outlets have been set up in Taiwan, company data showed. PROFITABLE Three Costco stores in Taiwan — in Taipei’s Neihu
MOBILITY SOLUTIONS: Tata Technologies’ participation marks more progress in Hon Hai’s efforts to expand its ecosystem through the platform, the Taiwanese firm said India’s Tata Technologies Ltd has become the latest member of Hon Hai Precision Industry Co’s (鴻海精密) MIH Open Platform to jointly develop sustainable mobility solutions for customers worldwide, the Taiwanese company said yesterday. It might include embedded and electrical, electric platform development and battery management system solutions, among others, Hon Hai said. Tata Technologies’ participation marks more progress in Hon Hai’s efforts to expand its electric-vehicle (EV) ecosystem through the MIH platform, it said. The open platform has about 2,380 members around the world, with an aim to jointly develop EV ecosystems and shrink the time to market for products. Hon Hai made the
SOARING PROFITS: Semiconductors and shipping have knocked automaking and construction out of the 10 highest paying industries, stock exchange data showed Mobile phone chip designer MediaTek Inc (聯發科) posted an average of NT$5.15 million (US$173,249) in annual compensation for non-managerial employees last year, marking the highest among all firms listed on the Taiwan Stock Exchange (TWSE), exchange data showed. That is a 66 percent increase from the company’s average compensation of NT$3.08 million in 2020, as its earnings per share (EPS) expanded from NT$26.01 in 2020 to NT$70.56 last year. That is also three times higher than the average compensation of NT$1.7 million in the nation’s semiconductor industry, the data showed. The increases helped MediaTek advance its ranking from third in 2020, replacing