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Propelling the Taiwanese green bond market

Denmark-headquartered wind energy company Ørsted has secured nominal NT$12bn through the issuance of green senior bonds, to finance its investments in offshore wind in Taiwan. This transaction marks the first ever green New Taiwan dollar (NT$) bond to be issued by a foreign corporate in Taiwan. The bonds will be issued in accordance with Ørsted’s Green Finance Framework.

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, BNP Paribas says that corporate issuance has reached US$75bn, and corporates around the world are tapping into this market to accelerate the energy transition.

BNP Paribas banking teams supported Ørsted on its green bond journey, acting as coordination bank for the dialogue with regulators, green advisor for the transaction, documentation bank for the euro medium term note (EMTN) programme and joint mandated lead arranger. 

“We are very pleased with the completion of this historic transaction which is an important step in the financing of the Changhua 1 & 2a project," commented Ørsted CFO Marianne Wiinholt. "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.”

“The green bond issuance today demonstrates our ambition to build strong ties with local financial institutions and to create an active green bond market to support the long-term development of the offshore wind industry in Taiwan,” added Matthias Bausenwein, Ørsted Asia Pacific president.

The unsecured green senior bonds of nominal NT$12bn in total comprise a 7-year NT$4bn fixed-rate tranche and a 15-year NT$8bn fixed rate tranche. Both tranches have settlement on 19 November 2019.

Details of the NT$4bn fixed rate green bond maturing in 2026:

  • Maturity date: 19 November 2026.
  • Coupon (fixed until maturity): 0.92%.
  • Price: 100% of the nominal amount.
  • Listing: Taipei Exchange.

Details of the NT$8bn fixed rate green bond maturing in 2034:

  • Maturity date: 19 November 2034.
  • Coupon (fixed until maturity): 1.50%.
  • Price: 100% of the nominal amount.
  • Listing: Taipei Exchange.

The information in the announcement does not change Ørsted’s financial guidance for the financial year 2019 or the announced expected investment level for 2019.

"This deal shows our strong commitment to sustainable finance in the region, and highlights how BNP Paribas can accompany its clients across a range of expertise, including regulatory advice and utilising its investor networks," said Olivier Rousselet, head of Territory for Taiwan, Asia Pacific at BNP Paribas.

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