Delta Electronics, Inc. (Taiwan) has filed the official terms of its US$1.5 billion dual-tranche exchangeable bond offering with the Taiwan Stock Exchange, following a board resolution on 14 September 2026. The filing confirms and sharpens the terms previously reported: exchange prices are fixed at a 15% premium for the short tranche and a 30% premium for the long tranche — not the wider 15%–20% and 30%–40% ranges initially circulated.
The bonds are issued by Delta Electronics Int’l (Singapore) Pte. Ltd. (DEISG), a wholly-owned subsidiary of the Taiwan parent, and are exchangeable into shares of Delta Electronics (Thailand) PCL (SET: DELTA).
Terms at a glance
- Tranche A: US$500 million, 1-year tenor, exchange price THB 266.80 per Delta Thailand share (15% premium), zero coupon, issued at 100% of face value, maturing 21 September 2027 at 98.01% of principal.
- Tranche B: US$1.0 billion, 5-year tenor, exchange price THB 301.60 per Delta Thailand share (30% premium), zero coupon, maturing 21 September 2031 at 97.53% of principal.
- Face value of US$200,000 per bond in both tranches, issued at 100% of face value.
Exchange ratios and 1.4% figure
The filing indicates the exchange ratios directly: each US$200,000 Tranche A bond converts into 24,856.8966 Delta Thailand shares, and each US$200,000 Tranche B bond converts into 21,988.7931 Delta Thailand shares. Applied to the full US$500 million and US$1.0 billion tranche sizes, that works out to roughly 62.1 million shares from Tranche A and 109.9 million shares from Tranche B — about 172 million shares combined, equal to roughly 1.4% of DELTA’s approximately 12.5 billion shares outstanding.
Notably, the filing explicitly states there is no impact on the share capital of either Delta Taiwan or the issuer, DEISG, from any future exchange. This confirms the shares delivered on exchange are existing shares rather than newly issued stock, so any conversion would not dilute Delta Taiwan’s outstanding share count.
Redemption and put/call structure
Both tranches carry a 0% coupon and are unsecured, with no collateral pledged. Bondholders can exercise exchange rights any time from 1 November 2026 up to 10 business days before maturity (or an earlier redemption date).
Investors also have early redemption (“put”) rights: Tranche B holders can require redemption at 99.25% of principal at the 1.5-year mark and 98.51% at the 3-year mark (around March 2028 and September 2029). Tranche A carries no investor put.
The issuer holds call rights as well: Tranche A becomes callable from 21 December 2026 if Delta Thailand’s share price trades at least 120% above the relevant conversion threshold for 20 consecutive trading days; Tranche B becomes callable from 21 September 2029 under an equivalent 130% threshold. Both tranches are also callable if outstanding principal falls below 10% of the original issue size, or in the event of certain Singapore tax law changes. Additional early-redemption triggers apply if Delta Thailand shares are delisted or suspended for more than 30 consecutive trading days, if there is a change of control at Delta Taiwan, or if DEISG ceases to be wholly owned by Delta.
Use of proceeds
Proceeds will strengthen working capital and support future business expansion. Citicorp International Limited acts as trustee, while Citigroup Global Markets Singapore Pte. Ltd. and J.P. Morgan Securities Asia Private Limited act as underwriters.
