Societe Generale has secured approval by the Financial Supervisory Commission, Republic of China (Taiwan), to issue green bonds in Taiwan.
The proceeds of the issuance will be used to fund renewable energy projects in Taiwan, including the project financing of Formosa 1, Taiwan’s first commercial-scale offshore wind farm.
According to the France-based bank, the green bonds will also support the sustainability-related actions from the Taiwanese government to accelerate the use of green energy.
The total issue size of TWD 1.6 billion (approximately EUR 45 million) is split into a five-year tranche of TWD 900 million, ten-year tranche of TWD 500 million and a 15-year tranche of TWD 200 million, at respective coupon rates of 0.85%, 1.12% and 1.63%.
Societe Generale stated that its Taipei Branch received a long-term rating of twAA+ from Taiwan Ratings.
“With this first TWD denominated green bond issued by a foreign bank in Taiwan, Societe Generale demonstrates its continued commitment to contributing to the financing of a more sustainable economy,” said Hikaru Ogata, CEO of Societe Generale in Asia Pacific.
“By leveraging its structuring and distribution expertise, the bank supports the local development of the sustainable bond market, thus enabling its clients to access capital markets as an additional funding source alongside bank lending.”
Formosa 1 Phase 2 will comprise 20 Siemens Gamesa 6MW turbines located off the coast of Chunan Town due to be operational in 2020.
The 120MW project is being developed by a joint venture of Ørsted (35%), Taiwanese developer Swancor Renewable (15%) and Macquarie Capital (50%).