Delta Electronics Seeks $1.5 Billion Thai-Linked Bonds

Delta Electronics is raising $1.5 billion through zero-coupon exchangeable bonds issued by its Singapore subsidiary, with proceeds intended for working capital, existing operations and regional expansion. The offering comprises $500 million due in 2027 and $1 billion due in 2031, exchangeable into existing shares of Thailand-listed Delta Electronics Thailand at premiums of about 15% and 30%, respectively. If fully exchanged, the bonds would represent roughly 172 million shares, or 1.38% of Delta Thailand’s outstanding equity, monetizing part of the parent company’s 42.85% stake without directly issuing new shares. The longer-dated notes include investor put options, while the bonds’ value will depend largely on Delta Thailand’s share performance because they pay no regular coupon. The financing comes as Delta expands manufacturing capacity in Southeast Asia to serve demand for power-management systems, data-center components and electric-vehicle parts.