Bonds issued in the sustainable bond market surpass NT$300 billion

Taipei, May 5 (CNA) The outstanding value of bonds issued on the Taiwan Sustainable Bond Market (SBM) hit a new high to surpass NT$300 billion (US$10.17 billion), the Taiwan Stock Exchange Taipei (TPEx), which manages the local bond market, said Thursday.

As of May 4, bonds outstanding on SBM totaled NT$302.6 billion with a total of 100 bond tranches, which was also a record, circulating in the market, TPEx said.

TPEx operates the SBM, which includes green, social and sustainability bonds in an integrated listing and trading mechanism, as part of its efforts to promote corporate sustainability.

After about NT$100 billion of bonds were issued on SMB in 2021, Taiwanese companies either continued to sell bonds or sold their bonds for the first time on SMB since the start of this year. with approximately NT$41.29 billion of bonds listed on the board.

Among the companies selling bonds on SMB is Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, which issued two tranches of green bonds worth $5.4 billion. NT so far this year after selling three tranches of green bonds worth NT$12 billion.

Vanguard International Semiconductor Corp., a small contract chipmaker in Taiwan, issued a tranche of green bonds worth NT$1 billion earlier this year to bring its total green bond sales to NT$1.7 billion.

Chunghwa Telecom Co. and Far Eastone Telecommunications Co., two of Taiwan’s leading telecommunications service providers, participated in SBM for the first time this year, issuing NT$3.5 billion in sustainable bonds and 2.7 billion respectively. billion NT dollars of social bonds. , according to the TPEx.

So far this year, local non-financial companies have become more active in SBM by issuing NT$12.6 billion of debt, up 500% from the previous year, indicating that they have become more willing to take action to support business sustainability and transform their operations, TPEx said.

The TPEx said these local non-financial debt issuers accounted for about 31% of total bond sales on SBM so far this year, while local financial institutions and foreign issuers accounted for the remaining 69%.

Green bonds, promoted by Taiwan’s capital markets and financial authorities, aim to encourage companies to act in an environmentally responsible manner, with profits going to environmentally friendly projects.

Social bonds are debt instruments that raise funds for social projects such as gender equality initiatives, while sustainability bonds are a combination of green bonds and social bonds and are used to fund projects that bring environmental and socio-economic benefits.

(By Han Ting-ting and Frances Huang)

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