Bulletin: Vanguard's Equity Issue Reduces Financial Risk - S&P Global Ratings’ Credit Research

Bulletin: Vanguard's Equity Issue Reduces Financial Risk

Bulletin: Vanguard's Equity Issue Reduces Financial Risk - S&P Global Ratings’ Credit Research
Bulletin: Vanguard's Equity Issue Reduces Financial Risk
Published Aug 05, 2024
2 pages (1230 words) — Published Aug 05, 2024
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Abstract:

This report does not constitute a rating action. TAIPEI (S&P Global Ratings) Aug. 5, 2024-- Vanguard International Semiconductor Corp.'s planned equity issue and improving operating performance will temper the financial risk associated with its construction of a 12-inch fabrication plant in Singapore. On July 29, 2024, Vanguard (BBB-/Stable/--) announced an equity issue plan to support the construction of this foundry. Total proceeds could reach new Taiwan dollar (NT$) 20 billion based on the current share price of the Taiwan-based chipmaker. We believe the equity issue, and equity injections and prepayments from its joint venture partner, NXP Semiconductors N.V. (BBB+/Stable/--), will enable Vanguard to cap its ratio of debt to EBITDA at about 1.5x in 2026. Vanguard's recovering operating performance provides

  
Brief Excerpt:

...August 5, 2024 This report does not constitute a rating action. TAIPEI (S&P Global Ratings) Aug. 5, 2024--Vanguard International Semiconductor Corp.'s planned equity issue and improving operating performance will temper the financial risk associated with its construction of a 12-inch fabrication plant in Singapore. On July 29, 2024, Vanguard (###-/Stable/--) announced an equity issue plan to support the construction of this foundry. Total proceeds could reach new Taiwan dollar (NT$) 20 billion based on the current share price of the Taiwan-based chipmaker. We believe the equity issue, and equity injections and prepayments from its joint venture partner, NXP Semiconductors N.V. (###+/Stable/--), will enable Vanguard to cap its ratio of debt to EBITDA at about 1.5x in 2026. Vanguard's recovering operating performance provides further support for its investment plans in 2024-2025, in our view. Vanguard had a net cash position as of March 31, 2024. Vanguard will form a 60:40 joint venture with...

  
Report Type:

Bulletin

Ticker
5347@TT
Issuer
Vanguard International Semiconductor Corp.
Sector
Global Issuers
Country
Taiwan
Region
Emerging Markets
Format:
PDF Adobe Acrobat
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S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

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MLA:
S&P Global Ratings’ Credit Research. "Bulletin: Vanguard's Equity Issue Reduces Financial Risk" Aug 05, 2024. Alacra Store. May 21, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Vanguard-s-Equity-Issue-Reduces-Financial-Risk-3224462>
  
APA:
S&P Global Ratings’ Credit Research. (). Bulletin: Vanguard's Equity Issue Reduces Financial Risk Aug 05, 2024. New York, NY: Alacra Store. Retrieved May 21, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Vanguard-s-Equity-Issue-Reduces-Financial-Risk-3224462>
  
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