Priced 2nd October, 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 Project2, Taiwan’s first commercial-scale offshore wind farm. This bond is aligned with the Green Bond Taiwanese requirements and with the Positive Impact Finance principles launched in Paris along with United Nations Environmental Program (UNEP)3. Societe Generale guarantees a high standard of transparency for the transaction, thanks to a strong follow-up of the eligible assets and its characteristics.
The total issue size of TWD 1.6 billion is split into three tranches (5-year: TWD 900 million, 10-year: TWD 500 million, 15-year: TWD 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 Positive Impact 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 commented: “With this first TWD denominated Positive Impact Bond issued by a foreign bank in Taiwan, Societe Generale demonstrates its continued commitment to contributing to the financing of a more sustainable economy with the best available Environmental and Social standards. 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.”
As a pioneer in the definition of the UNEP’s Positive Impact Finance initiative, Societe Generale is committed to developing innovative sustainable and positive impact funding solutions for its clients4. The Bank has set itself the objective to contribute to raising €100 billion in financing for the energy transition by 2020, with more than 50% having already been achieved this summer.
In the Asia Pacific region, Societe Generale has established itself as a leading player in the renewable energy space, having played key roles for a number of impactful projects, including the Bulgana Green Power Hub and Beryl Solar Farm projects in Australia, the Hasang Hydroelectric Power Plant in Indonesia, the Sanchuan Energy’s hydro power project in China.