This article is also available in Traditional Chinese.
The corporate green bond was born in 2013, with local renewable energy sector issuers taking the lead in coming to market. In 2019 so far, corporate issuance has reached US$75 billion. Corporates across the world are tapping into this market to accelerate the energy transition, and last week the renewable wind energy company Ørsted A/S extended this to Taiwan, where it priced the country’s first foreign-issued corporate green bond, becoming the first foreign corporate to issue in NT$.
The 7 and 15 year dual-tranche bond raised NT$12 billion ($400 million equivalent) and was welcomed by all types of Taiwanese investors. BNP Paribas banking teams played an essential role in supporting Ørsted A/S, acting as Coordination Bank for the dialogue with regulators, Green Advisor for the transaction, Documentation Bank for the EMTN Programme and Joint Mandated Lead Arranger.
The proceeds of the bond will be used for the financing of eligible green capital expenditure (CAPEX) for the construction of Ørsted’s offshore wind projects in Taiwan, and repayment of the existing TWD green revolving credit facility that BNP Paribas lead arranged earlier this year.
Ørsted CFO Marianne Wiinholt said: “We are very pleased with the completion of this historic transaction… We are proud to help develop the local financial market with respect to green financing and this underlines our commitment to Ørsted’s activities in Taiwan”.