The Taipei Exchange (TPEx) announced the “Operational Directions for Sustainability Bonds” on October 6, 2020. This paved the way for sustainability bonds to be listed in Taiwan for the first time. On November 6, two bonds issued under the new guidelines, totaling US$ 70 million in value, debuted on the TPEx, signaling a milestone not only for the TPEx, but also for sustainable development in the capital markets of Taiwan.
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The Chairperson of TPEx, Mr. Philip Chen, commented on the crucial role of TPEx in promoting sustainability. “We introduced green bonds at TPEx in 2017, creating a regulated environment for green projects to bridge the financing gap. The market saw substantial growth soon after it was launched. We now aim to facilitate capital flows into socially responsible and sustainable projects with the evolution of green bond market into a comprehensive sustainable bond market.” He emphasized that the classification standards applied to use of proceeds, the external review requirements and the reporting regulations for TPEx’s sustainable bond market are all of a world-class standard. These encompass the principles and guidelines of the International Capital Market Association (ICMA), as well as the mechanisms in place at other major international exchanges.
A recipient of the “Exchange Introducing New Listing Guidelines” certificate granted by the Green Bond Pioneer Awards in 2018, TPEx to date has listed a total of 46 green bonds representing total outstanding amount of US$ 4.8 billion, most notably including US$ 1 billion issued by a subsidiary of the global leader in offshore wind power, Ørsted A/S.
“The success of the green bond market indicates that investors have a strong appetite for ESG-related instruments in Taiwan. In June 2020, we introduced the first CSR-focused index, TIP TPEx CSR Index, to enrich our existing ESG-related indices.” Chairman Chen added “Beyond innovating in products, TPEx has gone further, implementing regulations that require larger listed companies and companies in the food, chemicals and finance sectors to publish a CSR report annually. In addition, TPEx has become a joint supporter of Task Force on Climate-related Financial Disclosures (TCFD) this year, committing ourselves to enhancing the disclosure framework accounting for climate risks, in line with the global trend.”
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