Taipower plans to issue more green bonds

Taipower aims to sell NT$2.4 billion worth of green bonds next month

Taiwan Power Co (Taipower) plans to issue more green bonds in a sign of increasing investor interest in the country’s renewable energy infrastructure.

Taipower plans to sell NT$2.4 billion (US$82.47 million) worth of green bonds in mid-May, according to local reports. The proceeds will be used to develop renewable energy, including an offshore wind power programme, a solar power project and hydroelectric power. The bonds will be traded over the counter.

Taipower said it could issue more green bonds by the end of 2018, potentially boosting the total issuance amount to NT$10 billion for the year, one media report notes. The upcoming NT$2.4 billion in green bonds will carry a maturity of 10 years and a coupon rate of 1.10%.

This will be the second time Taipower will be issuing green bonds after the state-run company listed NT$8.3 billion in the financial instruments on the OTC market at the end of 2017. 

On December 15, Taipower sold two tranches of green bonds: one was NT$5.6 billion with a maturity of 7 years and a 1.04% coupon rate, and the other was NT$2.7 billion with a maturity of 10 years and a 1.15% coupon rate.

The funds raised from the two tranches have been used in a wide range of projects including the refurbishing of the natural gas-powered electricity plant in Yunlin County's Mailiao Township and a coal-fired power plant in Taoyuan. 

Photo: Taiwan solar-powered stadium, Wikipedia

 

 

Date

16 Apr 2018

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