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Hon Hai issues new corporate bonds with fixed rates

Published 08/05/2025, 10:50
Hon Hai issues new corporate bonds with fixed rates
2317
1.97%

TAIPEI - Hon Hai (TW:2317) Precision Industry Co., Ltd., also known as Foxconn (SS:601138), has announced the issuance of its second series of unsecured corporate bonds for 2025, with a total value of NTD 8.35 billion (approximately USD 280 million). The bond issuance is divided into three tranches, with varying tenors and fixed annual interest rates.

The first tranche, labeled "P14 Hon Hai 2A," is set to issue bonds worth NTD 300 million with a three-year maturity period, carrying a fixed interest rate of 1.95%. These bonds will mature on May 9, 2028.

The second tranche, "P14 Hon Hai 2B," involves bonds amounting to NTD 5.7 billion, with a five-year term and an interest rate of 2.00%. The maturity date for this series is May 9, 2030.

The third and final tranche, "P14 Hon Hai 2C," will see Hon Hai issuing bonds valued at NTD 2.35 billion with a ten-year maturity and an interest rate of 2.15%, maturing on May 9, 2035.

All three tranches will be issued at par value, with each bond having a face value of NTD 1,000,000. The repayment of the principal is due at maturity for each series, and interest payments are scheduled annually based on simple interest-bearing terms starting from the issuing date.

The issuance of these bonds is part of Hon Hai’s broader financial strategy to raise capital. The company has not specified the intended use of the proceeds from the bond sales in the press release.

This move by Hon Hai comes as companies worldwide are navigating the financial markets to secure funds for various strategic initiatives. Bond issuances are a common method for corporations to obtain capital, offering investors fixed-income opportunities.

The information regarding the bond issuance is based on a press release statement and is intended for investors and market watchers to understand the specifics of the new debt issue by Hon Hai Precision Industry Co., Ltd.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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