Oct 04, 2019 Market Comments Off on ASE Technology issues US$300 million in green bonds
Taipei-ASE Technology Holding Co., the world's largest integrated circuit packaging and testing services provider, issued US$300 million in green bonds Thursday in an effort to offset the company's gas emissions.
In a statement posted by the Taipei Exchange (TPEx), which runs the over-the-counter (OTC) market, the exchange said ASE Technology is the fourth company in the local private sector to sell green bonds in Taiwan after textile maker Far Eastern New Century Corp., Evergreen Marine Corp. and rubber and plastics material maker Chi Mei Corp.
The TPEx said ASE Technology is the first manufacturer in Taiwan to issue foreign currency-denominated green bonds on the local market, while the three others companies all issued Taiwan dollar-denominated green bonds locally.
ASE Technology issued the green bonds in two tranches: one has a maturity of three years with a coupon rate at 2.15 percent and the other a maturity of five years with a coupon rate at 2.5 percent, the TPEx said.
Taipei Fubon Commercial Bank and Fubon Securities under Fubon Financial Holding Co. served as the underwriters of the green bond sale, the TPEx added.
The green bond initiative is aimed at highlighting the issuers' corporate responsibility to the environment, and the proceeds will go toward funding environmentally friendly projects, according to the TPEx.
The TPEx said the proceeds raked in by ASE Technology will be used by its subsidiary Advanced Semiconductor Engineering Inc. for projects in which the unit will construct energy efficient green buildings, promote energy conservation at its production lines and water recycling.
These environmental protection projects are expected to boost the subsidiary's wide ranging eco-friendly efforts such as renewable energy development, greenhouse gas reductions, waste recycle and pollution control, TPEx said.
The exchange said these projects to be implemented by the ASE unit are expected to cut carbon dioxide emissions by about 280,000 metric tons a year.
Taipei Fubon Bank said at a time when green energy development is one of the top agenda items focused on by global enterprises, green bonds have attracted attention from bond investors in the market.
Since green bond trading started on the OTC market in May 2017, a total of 32 tranches of such bonds have been issued locally with a value of NT$73.8 billion (US$2.38 billion).
The TPEx said in the wake of more green bond sales planned by Taiwanese banks, state-own enterprises and foreign offshore wind power developers, their aggregate issuance value is expected to top NT$90 billion by the end of this year.
Source: Focus Taiwan News Channel
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