CHIMEI Corp (CHIMEI, 奇美實業) on Wednesday issued Taiwan’s first sustainability-linked bond (SLB) on the Taipei Exchange.
Arranged and underwritten by CTBC Bank (中國信託銀行), the SLB was oversubscribed and marked a new milestone in the domestic bond market’s sustainable development.
CHIMEI’s SLB was issued in support of the Financial Supervisory Commission’s sustainable development policy. The unsecured corporate bond has a five-year maturity, 1.65 percent coupon rate and total issue size of NT$1 billion.
Photo courtesy of CTBC Bank
It is the first certified SLB since the Taipei Exchange Operation Directions for Sustainable Bonds was announced in July.
Attending the listing ceremony along with CHIMEI president Chao Lin-yu, CTBC Bank vice chairman Austin Chan said he was confident that the bond would have a positive impact on environmental sustainability and development.
In particular, the bond would bridge the gap between capital market and corporate sustainable development goals while also practically facilitating CHIMEI’s sustainable development and increasing the variety of sustainable bonds to investors, Chan said.
The coupon rate of the bond is determined by two CHIMEI sustainability performance targets based on the Science Based Targets initiative: reducing greenhouse gas emissions (Scopes 1 and 2) by 16.8 percent by 2025 from 2021 levels, and raising the portion of water reuse in its manufacturing processes to 80 percent by 2025.
If the targets are not met, as determined by a third party, the bond’s coupon rate will increase to benefit investors’ interest income.
CHIMEI’s Chao said the SLB highlighted how the company uses innovative solutions and concrete actions to realize its long-term commitment to environmental sustainability worldwide.
Moving forward, CHIMEI will continue to seek opportunities to bring supply chains and financial institutions together to the benefit of environment, to actively implement “Clean and Green” sustainable development, and to strive for net-zero emissions with partners worldwide, he said.
The SLB was conducted based on the Sustainability-Linked Bond Principles of the International Capital Market Association. The positive market feedback it received reflects investors’ satisfaction with CHIMEI’s business performance over the years and trust in its responsible investment and environmental protection efforts, the company said.
Serving as the sole arranger of CHIMEI’s SLB is the latest sustainability milestone for CTBC Bank, following the successful transactions of Taiwan’s first green bond, first sustainability bond and first social bond.
The bank said that going forward, it would continue to be a strong supporter of Taiwan’s bond market by expanding its financial services in sustainable finance, developing sustainable fundraising and investment products, and assist in achieving clients’ sustainability goals.
SEEKING CLARITY: Washington should not adopt measures that create uncertainties for ‘existing semiconductor investments,’ TSMC said referring to its US$165 billion in the US Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) told the US that any future tariffs on Taiwanese semiconductors could reduce demand for chips and derail its pledge to increase its investment in Arizona. “New import restrictions could jeopardize current US leadership in the competitive technology industry and create uncertainties for many committed semiconductor capital projects in the US, including TSMC Arizona’s significant investment plan in Phoenix,” the chipmaker wrote in a letter to the US Department of Commerce. TSMC issued the warning in response to a solicitation for comments by the department on a possible tariff on semiconductor imports by US President Donald Trump’s
The government has launched a three-pronged strategy to attract local and international talent, aiming to position Taiwan as a new global hub following Nvidia Corp’s announcement that it has chosen Taipei as the site of its Taiwan headquarters. Nvidia cofounder and CEO Jensen Huang (黃仁勳) on Monday last week announced during his keynote speech at the Computex trade show in Taipei that the Nvidia Constellation, the company’s planned Taiwan headquarters, would be located in the Beitou-Shilin Technology Park (北投士林科技園區) in Taipei. Huang’s decision to establish a base in Taiwan is “primarily due to Taiwan’s talent pool and its strength in the semiconductor
An earnings report from semiconductor giant and artificial intelligence (AI) bellwether Nvidia Corp takes center stage for Wall Street this week, as stocks hit a speed bump of worries over US federal deficits driving up Treasury yields. US equities pulled back last week after a torrid rally, as investors turned their attention to tax and spending legislation poised to swell the US government’s US$36 trillion in debt. Long-dated US Treasury yields rose amid the fiscal worries, with the 30-year yield topping 5 percent and hitting its highest level since late 2023. Stocks were dealt another blow on Friday when US President Donald
UNCERTAINTY: Investors remain worried that trade negotiations with Washington could go poorly, given Trump’s inconsistency on tariffs in his second term, experts said The consumer confidence index this month fell for a ninth consecutive month to its lowest level in 13 months, as global trade uncertainties and tariff risks cloud Taiwan’s economic outlook, a survey released yesterday by National Central University found. The biggest decline came from the timing for stock investments, which plunged 11.82 points to 26.82, underscoring bleak investor confidence, it said. “Although the TAIEX reclaimed the 21,000-point mark after the US and China agreed to bury the hatchet for 90 days, investors remain worried that the situation would turn sour later,” said Dachrahn Wu (吳大任), director of the university’s Research Center for
RSS