Societe Generale Settles First Taiwan Dollar-Denominated Green Bonds Issued by a Foreign Bank in Taiwan
Societe Generale today announced the completion of the issuance of its first Taiwan dollar (TWD)- denominated green bonds in Taiwan. The bonds are also the first of its type to be issued by a foreign bank in Taiwan. Subscribed investors included local insurers, securities houses, banks and bills finance companies in Taiwan.
Societe Generale forecasts that Taiwan will see more foreign banks and corporates issuing domestic green bonds as a result of the growing appetite for TWD denominated capital to finance new renewable energy construction projects in Taiwan, in particular offshore wind projects.
The issuance of the green bonds, also recognized as “Positive Impact Bonds” given its alignment with the positive impact bond principles launched in Paris along with United Nations Environmental Program (UNEP)1, is consistent with the Taiwanese Government’s efforts to accelerate the use of green energy which have spurred the rapid growth of its domestic green bond market, with issuances reaching TWD 49.4 billion this year alone, as of the end of September2.
With the “Sustainable and Positive Impact Finance” identified as a strategic growth initiative, Societe Generale is committed to developing innovative sustainable and positive impact funding solutions for its clients. It has set itself the objective to contribute to raising EUR 100 billion in financing for the energy transition by 2020, with more than 50% having already been achieved this summer.
The TWD 1.6 billion worth of issuance was split into three tranches: TWD 900 million over a 5-year tenure, TWD 500 million over a 10-year tenure and TWD 200 million over a 15-year tenure, 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.