Delta Electronics (TPE:2308) is offering a $1.5 billion dual-tranche overseas exchangeable bonds, according to a Tuesday filing to the Taiwan stock exchange.

The bonds are issued by its wholly-owned Singapore subsidiary, Delta Electronics Int'l (Singapore), and are exchangeable into shares of Delta Electronics (Thailand).

The first tranche is of $500 million with a one-year tenor and a 15% exchange premium, at a exchange price fixed at 266.80 baht per share. The second tranche of $1 billion will have a five-year tenor and a 30% exchange premium.

Both tranches carry zero coupons and are issued at face value.

On exercise of the exchange rights, holders of Tranche A Bonds will initially be entitled to receive 24,857 Delta Electronics shares for each $200,000 principal amount of the Tranche A Bonds, while the initial exchange price of Tranche B Bonds will be 301.60 baht per Delta Electronics share.

The funds raised from the bond issue will be used to strengthen the company's working capital and support future business expansion.