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Taipower lists NT$8.3 billion in green bonds, largest-ever on OTC

2017/12/15 20:49:23

CNA file photo

Taipei, Dec. 15 (CNA) State-owned Taiwan Power Co. (Taipower) listed NT$8.3 billion (US$277 million)-worth of green bonds on the over-the-counter (OTC) market Friday, the largest-ever issuance of such bonds in the exchange, the Taipei Exchange (TPEx) said.

The TPEx, which operates the local bond market, said the proceeds from the green bond sale will be used to fund environmentally friendly projects to cut carbon emissions under the green bond issuance initiatives.

Taipower's green bonds were sold in two tranches: one was NT$5.6 billion with a maturity of 7 years and a 1.04 percent coupon rate, and the other was NT$2.7 billion with a maturity of 10 years and a 1.15 percent coupon rate, the TPEx said.

Chen Yung-cheng (陳永誠), chairman of the TPEx, said that after the sale of Taipwer's green bonds, the total sale amount of the bonds in Taiwan topped NT$20 billion at a time when the awareness of environmental protection in the country has been on the rise.

So far, nine tranches of green bonds from seven issuers have been traded on the local market, including those of CPC, according to the exchange.

In May, four Taiwanese banks -- CTBC Bank, E. Sun Commercial Bank, KGI Bank and Bank SinoPac -- launched the first green bonds on the local market, valued at a total of NT$5.17 billion.

In July and September, France-based Crédit Agricole Corporate and Investment Bank (CACIB) sold US$120 million and US$25 million-worth of green bonds, respectively.

In August, State-owned oil refiner CPC Corp. Taiwan listed NT$2.8 billion-worth of green bonds on the OTC market.

Taipower Chairman Yang Wei-fuu (楊偉甫) said that his company was delighted to issue the largest-ever green bonds so far in Taiwan, showing its determination to push for initiatives in eco-friendly investment projects to fulfill its corporate responsibility.

According to Taipower, the company has listed 10 projects that will be funded by the proceeds, including the upgrading of a natural gas-powered electricity plant in Yunlin County's Mailiao Township, and a coal-fired power plant in Taoyuan; and emission reductions at a coal-fired power plant in Taichung.

Yang said Taipower aims to boost green energy production by adding wind power and solar power and natural-gas powered electricity in the future.

(By Han Ting-ting and Frances Huang)