Danish energy developer Orsted said Wednesday that it is working to issue Taiwan dollar-denominated green bonds on the local market by the end of the year.
In a statement, the company said it is negotiating the underwriting with a consortium led by BNP Paribas and Deutsche Bank and including CTBC Bank and Bank of Taiwan, the largest lender in the country. The Danish company did not disclose the financial terms of its planned green bond issue.
Orsted, one of the companies that received permission from the Taiwan government earlier this year to develop offshore wind power, signed an agreement in June with 15 Taiwanese and foreign banks to secure a five-year syndicated loan for its investments in Taiwan.
Earlier this year, Orsted said it was planning to build four offshore wind farms in Changhua at a cost of NT$380 billion.
In the first phase of the project, the company said, it would invest about NT$165 billion, with half of the money coming from its own funds and the other half from bank loans and other sources. One of the sources Orsted has been considering is Taiwan dollar denominated green bonds.
The green bond initiative, promoted by the capital market and financial authorities in Taiwan, is aimed at showing corporate responsibility with regard to environmental protection, with the proceeds going toward environmentally friendly projects, the company said.
Touting its experience in issuing green bonds in the global market, Orsted said it hopes its decision will help speed up the development of the green bond market in Taiwan.
The funds from the green bond sale will be injected into Taiwan’s offshore wind power industry to help the country achieve its renewable energy goals, Orsted said.
In Taiwan, green bonds are traded on the local over-the-counter (OTC) market, which is operated by the Taipei Exchange. The wind farm, to be built by Orsted some 35-50 kilometers off the coast of Changhua, is expected to have a capacity of about 900MW and supply about 1 million Taiwanese households with green power.
By the end of 2025, Orsted said, it will add 920MW to its offshore wind power capacity, and will boost the total to 1,820MW.
Source Focus Taiwan