Delta's parent locks in $1.5B exchangeable bond, caps Thai dilution at 1.4%
What's the deal? Delta Electronics, Inc, TaiwanDealroom has a profile for this one. Try Dealroom → has filed the terms of a US$1.5 billion dual-tranche exchangeable bond offering with the Taiwan Stock Exchange, following a board resolution on September 14, 2026. The bonds are issued by its wholly-owned Singapore subsidiary, Delta Electronics Int'l (Singapore), and are exchangeable into shares of Delta Electronics (Thailand) PCLDealroom has a profile for this one. Try Dealroom →.
The terms: Tranche A is US$500 million over one year, priced at a 15% premium; Tranche B is US$1 billion over five years, priced at a 30% premium. Both carry zero coupons and are issued at face value.
Why it matters: The filing sharpens earlier reported ranges, fixing exchange prices at US$8.73 and US$9.87 per share rather than the wider bands first circulated.
The dilution math: Full conversion would deliver roughly 172 million Delta Thailand shares — about 1.4% of the company's roughly 12.5 billion shares outstanding. The filing states there is no impact on the share capital of either Delta Taiwan or the issuer, confirming that exchanged shares are existing stock, not newly issued.
The fine print: Tranche B holders can require early redemption at the 1.5-year and 3-year marks; Tranche A carries no investor put. The issuer holds call rights tied to share-price thresholds, plus triggers for delisting, change of control, or Singapore tax changes.
What's the money for? Proceeds will strengthen working capital and support business expansion. Citicorp International acts as trustee, while Citigroup Global Markets SingaporeDealroom has a profile for this one. Try Dealroom → and J.P. Morgan Securities AsiaDealroom has a profile for this one. Try Dealroom → serve as underwriters.
The signal: At US$1.5 billion, the deal ranks among the largest post-IPO convertible rounds from a Taiwanese issuer — in the 97th percentile across 323 such rounds tracked all-time. By routing the raise through exchangeable bonds tied to its Thai unit, Delta taps large-scale funding while shielding its own share count from dilution.
Image credit: Generated with Gemini
