Taiwan Power and CPC Face Rising Interest Costs on Bonds

Taiwan Power Company (台電) plans to issue NT$150 billion in corporate bonds this year, with interest rates returning to the 2% range due to a warming rate environment, pushing annual interest expenses to nearly NT$30 billion. CPC Corporation (中油) also faces financial strain, with interest costs exceeding NT$13 billion. 台電's total short- and long-term borrowings have surpassed NT$1.7 trillion, with about NT$90.2 billion in bonds maturing this year. The company's annual losses may exceed NT$70 billion, prompting its union to urge lawmakers to approve government subsidies after two previous NT$100 billion proposals were rejected. CPC reduced its bond issuance plan from NT$82.5 billion to NT$32.2 billion after securing NT$300 billion in special financing from eight state-owned banks, with NT$240 billion already utilized. The company plans to issue NT$8.8 billion more in the fourth quarter.