Far Eastern New Century Corporation took the lead in issuing the first social bond among domestic production business, listed on the Taipei Exchange today (May 24). The bond is the largest social bond issuance to date. It is also the fourth social bond in Taiwan since the first batch of social bonds were issued by CTBC Bank, KGI Bank and Bank Sinopac on May 18. As of May 24, the cumulative issue amount of Taiwan social bond market is TWD 3.9 billion.
According to the Taipei Exchange, the issue amount of the social bond issued by Far Eastern New Century Corporation is TWD 1.2 billion, with 5 year to maturity and a fixed coupon rate of 0.52%. The lead underwriter of the bond is KGI Securities and Ernst & Young is the external certification body. The funds raised will be used exclusively for social projects in the categories of “access to essential services”, “employment generation, and programs designed to prevent and/or alleviate unemployment stemming from socioeconomic crises” and “socioeconomic advancement and empowerment”. The specific investment projects include the production of raw materials for masks, protective clothing and plastic masks during the Covid-19 pandemic, the creation of employment opportunities for the disadvantaged, support for local small and medium-sized enterprises, and the priority procurement of recycled PET bottles from independent recycles, etc.
Taipei Exchange pointed out that social bonds are the best financial instruments to assist enterprises fulfill their corporate social responsibility and support specific target groups to promote social benefits and development. For more information on social bonds, please refer to the "Sustainable Bonds" section of Taipei Exchange website (www.tpex.org.tw).
