Taiwan News
Date: 2016-09-16
By: Jalen Chung and Frances Huang, Central News Agency

Taipei, Sept. 16 (CNA) Taiwan-based Hon Hai Precision Industry Co., the world’s largest contract electronics maker, has raised a total of US$1 billion from corporate bonds issued in two tranches, according to statement filed with the Taiwan Stock Exchange Thursday.

In the statement, Hon Hai said that through its fully owned subsidiary Foxconn (Far East) Ltd., it had sold US$600 million worth of five-year bonds with a 2.25 percent coupon and US$400 million worth of 10-year bonds with a 3.00 percent coupon.

The bonds were guaranteed by the parent company, which recently acquired a 66 percent stake in Sharp Corp. of Japan for US$3.5 billion, with Foxconn (Far East) taking an 18.41 percent share, Hon Hai said. Bank of China (Hong Kong), Citi, Goldman Sachs and HSBC were joint bookrunners on the deal, according to the statement.

Hon Hai said it plans to use the proceeds from the bond sale to fund capital expenditure, dent refinancing and for general corporate financing.     [FULL  STORY]