IoT Smart Energy Expansion Funded by $525M in BondsIoT Smart Energy Expansion Funded by $525M in Bonds

Delta Electronics has announced a $525 million bond issuance to accelerate the development of next-generation IoT-based smart energy-saving solutions to support AI, smart manufacturing, e-mobility and the energy transition. 

The issuing of overseas exchangeable bonds through the Taiwanese company’s subsidiary, Delta International Holding Limited, is expected to help the company optimize the efficiency of its working capital to support expansion and new technology development. 

The bonds are due in 2030, and each have a face value of $200,000.

Delta said the securities will be exchangeable into shares of Delta Electronics (Thailand) Public Co. with a conversion price of $5.41, which represents about a 40% premium over a reference price.

The company said with the funds it plans to develop IoT-based smart energy-saving technologies for key global megatrends such as AI, smart manufacturing, e-mobility and the energy transition, in addition to expanding its manufacturing, research and development and sales and service capabilities globally. 

Victor Cheng, CEO of Delta Electronics Thailand, last year said the firm wanted to develop solutions based on its core competencies in power conversion and thermal management and to align its business to trends such as Industry 4.0, industrial automation and advancements in AI. 

He said Delta is positioning itself as an industrial and commercial brand with offerings for both industry and market consumers. To achieve this, it is acquiring expert firms from the U.S., Europe and Asia to form “a robust industrial and building automation solution ecosystem.” 

It is also looking to develop automotive powertrain products for electric vehicle OEMs. 

The company recently developed power systems for data centers, ICT and telecom infrastructure.

At the beginning of January, it reported consolidated sales revenues in 2024 of $12.77 billion, an increase of 4.9% from the year earlier.