Far Eastern New Century Corp., one of the leading textile firms in Taiwan, listed US$102 million in green bonds on the over-the-counter (OTC) market on Jan. 8, making it the first local private manufacturer to sell such bonds in Taiwan, according to the Taipei Exchange (TPEx).
The initiative, promoted by the local capital market, is aimed at showing corporate responsibility with regard to environmental protection, with the proceeds going toward funding environmentally friendly projects, the TPEx said.
Far Eastern New Century is also the third manufacturer in Taiwan to echo the government's advocacy of strengthening environmental protection efforts in the country after state-run oil refiner CPC Corp., Taiwan, and Taiwan Power Co. began selling green bonds last year, the TPEx said.
According to the TPEx, the textile maker's green bonds carry a maturity of five years with a coupon rate of 0.95 percent.
KGI Securities is serving as the underwriter and financial advisor for Far Eastern New Century's issuance of green bonds. KGI Securities said the bonds have been well received by investors and are already oversubscribed.
Far Eastern New Century said the proceeds will be used for a broad range of production in a bid to reduce waste, including recycling of PET bottles into polyester chips.
In addition, the company will use the funds to improve its production technology in polyester items in an attempt to cut production of volatile organic compounds, while it is planning to purchase new equipment that will cut waste water production.
Far Eastern New Century said it will also build a green building in New Taipei's Banqiao District to house a research and development center.
Blake Lin (firstname.lastname@example.org)
Photo credit: United Daily News
Source: Focus Taiwan