Taipei--State-owned oil refiner CPC Corp. Taiwan (??) will issue NT$3 billion (US$99.17 million)-worth of "green bonds," making it the first state-owned enterprise to sell such bonds in the local market, the Taipei Exchange (TPex) said Wednesday.
The TPex, which operates the local bond market, said that CPC is scheduled to list the bonds by the end of September.
The initiative, promoted by the local capital market, is aimed at showing corporate responsibility with regard to environmental protection, with the proceeds going toward funding environmentally friendly projects, said the TPex.
At a time when the government is pushing for renewable energy development, the exchange said, the proceeds of the green bond sales will be used to develop renewable energy by a manufacturer issuer or be assigned as loans extended by financial issuers to enterprises keen to develop green energy.
So far, there have been five tranches of green bonds traded in the local market sold by financial institutions, with the latest issuer -- France-based Credit Agricole Corporate and Investment Bank (CACIB) -- having sold US$120 million-worth of green bonds by mid-July.
Four Taiwanese banks -- CTBC Bank (???), E. Sun Commercial Bank (???), KGI Bank (???) and Bank SinoPac (???) -- issued green bonds worth NT$5.17 billion in mid-May.
The TPex said that CPC green bonds will carry a maturity of 10 years with a coupon rate of no more than 2 percent.
In response to the green bond sale plan, CPC Vice President Ann S.C. Bih (???) said that the proceeds of the bond sale will be used to boost its liquefied natural gas (LNG) facility investment, including a plan to build an LNG receiving terminal in Taichung.
Bih said that the new terminal will have a storage capacity of about 6 million metric tons per year, which is expected to cut carbon dioxide emissions by 11.72 million metric tons annually compared with thermal power generation.
The TPex said that green bond issuers generally aim to polish their image in the capital market by improving corporate responsibility, since more and more foreign institutional investors, in particular from Europe, put much emphasis on how an enterprise fulfills its corporate responsibility .
Source: Focus Taiwan News Channel