Societe Generale issues Taiwan dollar denominated green bonds
The Taiwanese government wants one-fifth of energy production to be harvested from renewable sources by 2025, and this green bond issuance supports that aspiration
Societe Generale has become the first foreign bank to be granted approval by the Financial Supervisory Commission, Republic of China (Taiwan), to issue Taiwan dollar denominated green bonds in Taiwan. The proceeds of the issuance will be used to fund renewable energy projects in Taiwan, including the successful project financing of the Formosa 1 Offshore Wind Project1, Taiwan's first commercial-scale offshore wind farm.
The total issue size of TW$1.6 billion is split into three tranches (5-year: TW$900 million, 10-year: TW$500 million, 15-year: TW$200 million), at respective coupon rates of 0.85%, 1.12% and 1.63%. Societe Generale's Taipei Branch received a long-term rating of twAA+ from Taiwan Ratings.
This landmark green bond issuance will be supporting the sustainability-related actions from the Taiwanese government to accelerate the use of green energy. Taiwan has set itself a target to increase the share of renewables in electricity generation to 20% by 2025, which will include the installation of 5.5GW of offshore wind capacity, placing it at the forefront of offshore wind development in Asia Pacific.
Hikaru Ogata, CEO of Societe Generale in Asia Pacific comments: "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. 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."