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Land Bank of Taiwan Issues NTD1 Billion Sustainability Bond to Expand Green Finance Territory

In response to the Financial Supervisory Commission's "Green Finance Action Plan 2.0," the Land Bank of Taiwan issued a sustainability bond on the 23rd. The issuance amount is NTD1 billion, with a term of 3 years and a coupon rate of 1.50%. All raised funds will be used for green investments and social benefit investment projects.

 

Since the Financial Supervisory Commission launched the "Green Finance Action Plan 2.0" in 2020, its core strategies have included credit, investment, capital market financing, talent cultivation, information disclosure, promoting the development of green financial products or services, prudent supervision, international linkage, and incentive mechanisms. These strategies aim to build a sustainable financial ecosystem in collaboration with the Taipei Exchange and financial institutions.

 

As a fully state-owned bank, the Land Bank of Taiwan integrates its core financial operations to support the Financial Supervisory Commission's green finance initiatives. In addition to offering "sustainable credit" through sustainable linked syndicated loans, related supply chain financial services, and green deposit projects under various "sustainable products," the bank also utilizes funds from sustainability bonds to assist domestic industries in low-carbon transformation and enhance business resilience.

 

To implement sustainable finance, the Land Bank of Taiwan has seen significant results since issuing its first NTD1 billion (5-year) sustainability bond in 2021. In 2022, it followed up with two additional bonds: NTD1.6 billion (5-year) and NTD900 million (3-year). Including the latest issuance, the bank has issued a total of four sustainability bonds, bringing the outstanding circulation to NTD4.5 billion.

 

Out of the NTD4.5 billion in sustainability bonds, apart from the recently issued NTD1 billion, NTD3 billion has been used for social housing projects for thousands of households, and NTD500 million has been allocated to renewable energy, energy technology and various social benefit investment projects, showcasing the bank's commitment to ESG (Environmental, Social, and Governance) principles.

 

Furthermore, to achieve net-zero emissions, the bank has recently completed the signing of the Equator Principles, supported the Task Force on Climate-related Financial Disclosures (TCFD), and continuously introduced third-party verification. In 2023, all domestic and overseas operation sites passed the verification of greenhouse gas emissions (Scopes 1 and 2) and received the ISO 14064-1 Greenhouse Gas Organization Verification Certificate. Additionally, the bank has long focused on core strategic industries, small and medium enterprise loans, pension trusts, customer service, and fostering the sports industry.

 

With the successful promotion of ESG, the bank was awarded the "Excellence Award for Loans to Six Core Strategic Industries," the "Central Taiwan Regional Special Award for Balanced Development in SME Loans," and the "Trust 2.0 Plan (Phase 2) Pension Trust Award" by the Financial Supervisory Commission in 2023. It has also been ranked in the top 25% of banks for fair customer treatment by the Financial Supervisory Commission for five consecutive years. It has received the Ministry of Education's Sports Promoter Award for 15 consecutive years.

 

To enhance sustainable competitiveness, the bank has focused this year on green finance leadership and sustainable co-prosperity as its operational themes. It includes climate change-related risks in its business operations and seizes opportunities. ESG factors are incorporated into investment, financing, and product review processes. General industry exclusions and high-pollution/high-energy consumption industry investment and financing limits are established, and the bank actively engages with enterprises to create a sustainable ecosystem for the bank, society, and the environment.

 

Contact: Tse-Hsiu Cho

Tel.: 02-2348-3729

Release date: 2024/05/28 Last updated: 2024/05/28
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