TAIPEI (TVBS News) — Tainan City Government announced on Wednesday (Dec. 17) its first construction bond issuance, aiming to raise NT$8.15 billion (around US$259.6 million) for Southern Taiwan Science Park (南科) development. The city's Finance and Local Tax Bureau (財政稅務局) cited industrial expansion in the science park and Tree Valley Park (樹谷園區) as driving the need for land funding. This marks Tainan's debut in municipal bond financing for infrastructure projects.
The city plans to issue the bonds in three phases, according to a press release. The first phase releases NT$2 billion (around US$63.7 million) with a two-year term at a 1.38% coupon rate, which represents the annual interest return paid to bondholders. The second phase issues NT$2.7 billion (around US$86 million) over three years at 1.41%, while the final phase offers NT$3.45 billion (around US$109.9 million) with a five-year term at 1.43%.
The Finance and Local Tax Bureau emphasized that bond interest rates run approximately 0.3% lower than current bank loan rates, projecting savings of about NT$90 million (around US$2.87 million) in debt interest for the city's treasury. The bureau stated the bond issuance provides investors with a safe, stable investment while injecting new funding into urban construction. The city expects to finance more government projects through bonds in the future. ◼ (At time of reporting, US$1 equals approximately NT$31.4)
