Small logo Subscribe to leading news on impact investing. Learn More
The Brief Originals Dealflow Signals The Impact Alpha Impact Voices Podcasts Agents of Impact Open
What's Next Capital on the Frontier Measure Better Investing in Racial Equity Beyond Trade-offs Impact en las Americas New Revivalists
Local and Inclusive Climate Finance Catalytic Capital Frontier Finance Best Practices Geographies
Slack Agent of Impact Calls Events Contribute
The Archive ImpactSpace The Accelerator Selection Tool Network Map
About Us FAQ Calendar Pricing and Payment Policy Privacy Policy Terms of Service Agreement Contact Us
Locavesting Entrepreneurship Gender Smart Return on Inclusion Good Jobs Creative economy Opportunity Zones Investing in place Housing New Schooled Well Being People on the Move Faith and investing Inclusive Fintech
Clean Energy Farmer Finance Soil Wealth Conservation Finance Financing Fish
Innovative Finance
Personal Finance Impact Management
Africa Asia Europe Latin America Middle East Oceania/Australia China Canada India United Kingdom United States
Subscribe Log In

First green bond in Taiwan dollars to fund island’s clean energy shift

ImpactAlpha, October 22 – French bank Societe Generale has issued a TW$1.6 billion ($51.7 million) green bond, backed by local insurers, securities firms, banks, and other financial institutions in Taiwan. It is the first green bond to be denominated in Taiwan dollars and the first to be issued by a foreign bank on the island.

A total of $389 billion in green bonds have been issued worldwide—part of the larger $1.5 trillion climate bond universe. Three quarters of green bonds have been issued in just three currencies: U.S. dollars, euros and Chinese yuan. So far, most “local currency” issuances have been initiated by development banks, rather than the private sector.

Societe Generale’s bond, issued in three tranches, will be used to fund renewable energy projects in Taiwan, including the island’s first commercial scale, off-shore wind farm: the 120-megawatt Formosa 1 project.

Taiwan is looking to increase its share of renewables-based power generation from 5% today to 20% by 2025, and hopes to unlock $59 billion in private capital to achieve that goal. Taiwan’s regulatory body, Financial Supervisory Commission, approved the island’s first green bond in May last year as one avenue to catalyzing private capital.

Already the Taiwanese green bond market has been marred by “greenwashing” claims. State-owned Taiwan Power Co. sought to raise $271 million in “green financing” to upgrade coal and gas power stations, the Wall Street Journal reported. Such bonds are screened out of green and climate bond totals by tracking groups like the Climate Bonds Initiative.

Societe Generale says its Taiwan dollar-denominated bond is aligned with the U.N. Environmental Program impact finance principles. It is part of the bank’s goal of raising €100 billion ($115 billion) to “finance the energy transition” by 2020. The company states it is halfway to that goal.

You might also like...