Formosa Petrochemical Corp. is seeking to raise NT$10 billion ($316 million) through unsecured bonds as Taiwan’s petrochemical giants grapple with an industry downturn and falling share prices.
The planned debt issuance comes as Formosa Petrochemical’s stock tumbled to NT$38, its lowest level since the company’s 2003 listing. Parent company Formosa Plastics Corp. also saw its shares sink to NT$38.85, a 22-year low.
The broader Formosa group faces mounting pressure from excess capacity in China’s petrochemical sector, which has dragged down product prices and squeezed margins. Nan Ya Plastics Corp., another group member, fell below its 2008 financial crisis low to NT$34.7.
The new bonds will help refinance existing debt and boost working capital, the company said. The offering follows Formosa Plastics’ recent NT$14.6 billion ($462 million) bond issuance completed in two tranches this year.
The timing and structure of the new bonds will depend on market conditions, with options for both fixed and floating rates. Securities firms will handle the public offering.
