Far Eastern New Century Corp (FENC, 遠東新世紀) is today issuing its debut social bond. The five-year bond, which is listed on the Taipei Exchange (TPEX), is the first social bond launched by a Taiwanese company with a coupon rate of 0.52 percent and an issue size of NT$1.2 billion (US$42.95 million). KGI Securities Ltd (凱基證券) is the sole lead manager.
FENC is the only pioneer to issue all of Green, Sustainability and Social bonds in Taiwan’s capital market which has reached an important milestone in Sustainable Finance.
FENC is ahead of other domestic companies in innovation. To echo the government’s policies on sustainability development, FENC issued its first Green Bond in 2018 and the first Corporate Sustainability Bond under the Framework aligned to UN 17 SDGs in 2020.
Its Framework was designed as the basis for future Green, Social and Sustainability bonds to be issued.
This year, with the promulgation of “Operational Directions for Sustainable Bonds” by Taipei Exchange in April, FENC successfully issues the first Corporate Social Bond, in the hope that the issuance will motivate other local companies to follow suit and contribute to social causes.
The use of proceeds of the Social Bond will be devoted to social projects, which includes supporting the underprivileged, providing epidemic prevention supplies for the fight against COVID-19, encouraging local procurements, and sustaining job opportunities during pandemics.
The projects are in alignment with FENC’s mission statement – Having innovative thinking that shall bring happiness and prosperity to the community where we serve.
KGI Securities, a unit of China Development Financial Holding Corp (CDFHC, 中華開發金控), is acting as sole lead manager for the issuance of the social bond. The firm is fully aligned with the roadmap for sustainable finance outlined by regulators and committed to guiding companies in using raised funds in investment projects that benefit society and the environment.
KGI Securities is a prolific underwriter and active player in the sustainable bond market. In addition to FENC, the firm has over the past few years acted as lead manager in the issuance of green bonds by CPC Corp, Taiwan (台灣中油), Taiwan Power Co (台電) and Credit Agricole CIB’s Taipei branch.
By helping enterprises and financial institutions raise funds and flourish in the capital market, KGI Securities has helped to develop the sustainable bond market.
As a responsible player in the financial sector, the firm strives to make an impact and contribute to sustainable development, which aligns with CDFHC’s goal of becoming the industry leader in environmental, social and governance implementation.
