To help green energy technology industries raise funds, and to promote sustainable environmental development, the TPEx promulgated “Operational Directions for Green Bonds” on April 21, 2017.TPEx established the green bond accreditation mechanism.On April 29, 2021, the TPEx promulgates “Operational Directions for Sustainable Bonds” and repeals “Operational Directions for Green Bonds” and “Operational Directions for Sustainability Bonds”. Since that, the sustainable bond market includes green bonds, social bonds and sustainability bonds.
Green Bond indicates the financing tool which all of the funds raised by the issuer are to be used for expenditures or loan on green investment projects, including climate change, environmental protection, renewable energy and carbon reduction…etc.
In accordance with the Taipei Exchange Operational Directions for Sustainable Bonds, bonds with Green Bond Qualification accredited by Taipei Exchange, and applied to the Taipei Exchange for TPEx trading can be listed as Green Bond.
Note:
*Foreign issuer,who issue general board NTD-denominated foreign straight bond or general board interntional bond,should apply to the Central Bank for a letter of approval before applying for the bond issuance.
**The 3-day accreditation review period does not include time for the issuers to request the TPEx to preview the relevant documents prior to formal application
*Note:The 3-day accreditation review period does not include time or the issuers to request the TPEx to preview the relevantdocuments prior to formal application.
*Note:The 3-day accreditation review period does not include time or the issuers to request the TPEx to preview the relevantdocuments prior to formal application.
An issuer applying for green bond accreditation shall apply to the TPEx by submitting a Sustainable Bond Accreditation Application Form, along with the required documents, and specifying the required particulars.
The required documents shall include:
An issuer issuing the following securities may apply to the TPEx for green bond accreditation.
In addition to those listed above, green bonds also include beneficial securities or asset-backed securities for which the issuer applies for TPEx trading pursuant to Article 7-1 of the TPEx Rules Governing the Review of Securities for Trading on the TPEx.
Proceeds of Green Bonds must be exclusively applied to invest, finance or re-finance in full new and/or existing eligible Green Projects.
As for beneficial securities or asset-backed securities, all of the assets in the asset pool should come from green investment projects.
In accordance with the Taipei Exchange Operational Directions for Green Bond, categories of potential eligible Green Projects are listed below. These projects must be substantial improvement to benefit the environment. The eligible green projects are listed below.
Before the issuance of bond | Requirement |
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Green Bond Framework | Assessment opinion or certification report issued by a certification body on the green bond framework. |
After the issuance of bond | Requirement |
Allocation Report | An assessment opinion or certification report issued by a certification body on the allocation report. |
Aside from a domestic or foreign certification body, domestic government agencies and state-owned enterprises may designate governmental organizations to issue the assessment opinion or certification report.
Before the issuance of bond | Requirement |
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Disclose the Framework in the prospectus | Issuers should disclose the Green Bond Framework in their prospectus. |
Disclose the assessment opinion or certification report of the Framework | Issuers should disclose such information on the Market Observation Post System (MOPS): The Green Bond Framework and the assessment opinion or certification report issued by external reviewer. |
After the issuance of bond | Requirement |
Disclose the allocation report | Issuers shall report the status of use of the funds yearly during the life of the green bonds or the period of use of the funds raised by the bonds. |
Disclose the assessment opinion or certification report of the allocation report | Issuers shall report the assessment opinion or certification report on the status of use of the funds after the proceeds are fully allocated. The aforementioned information should be disclosed on the Market Observation Post System (MOPS). |