Taiwan to issue $82 million in new Green Bonds

Market operator, Taipei Exchange has approved a plan from state-owned utility, Taipower for the sale of $82 million in green bonds, to be brought on sale on the local over the counter market in mid-May 2018. The bonds will have a 10-year maturity and a coupon rate of 1.10%, according to Taipower.

Taipower says it will use the proceeds from the bonds to develop renewable energy projects, including solar, offshore wind and hydro.

This will be the second tranche of green bonds issued by Taipower, after TW$8.3 billion worth was put onto the market in December 2017. Taiwan’s Financial Supervisory Commission approved the first sale of green bonds on the over the counter market in May 2017, and since then, 11 local and foreign institutions have listed bonds on the market.

Taipower’s board approved a plan to place TW$18 billion ($612 million) in green bonds, and said that including the TW$2.4 billion to be released in May, total issuances for 2018 could surpass TW$10 billion ($340 million).

Earlier in 2018, Taipower began construction on Taiwan’s largest solar PV power plant – a 100 MW project located at the Changhua Coastal Industrial Park. The utility has also stated plans to build a 150 MW PV power plant on the site of a former salt mine.

Taipower is the second of the island’s state owned enterprises to issue green bonds over the counter, after oil company, CPC Corp. Taiwan placed TW$3 billion in green bonds in September 2017.