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Far Eastern New Century issues Taiwan’s Debut Social Bond, with KGI Securities as the Sole Lead Manager

      2021-05-23

Far Eastern New Century Corporation (1402, “FENC”) issues and lists its debut social bond on Taipei Exchange today. The 5-year bond is the first social bond launched by a Taiwanese corporation with a coupon rate of 0.52% and issue size of TWD 1.2 billion. KGI Securities is the sole lead manager. FENC is the only pioneer to issue all of Green, Sustainability and Social bonds in Taiwan capital market which has reached an important milestone in Sustainable Finance.
    
FENC is ahead of other domestic companies in innovation. To echo government’s policies on sustainability development, FENC issued its first Green Bond in 2018 and the first Corporate Sustainability Bond under the Framework aligned to UN 17 SDGs in 2020.  Its Framework was designed as the basis for future Green, Social and Sustainability bonds to be issued. This year, with the promulgation of “Operational Directions for Sustainable Bonds” by Taipei Exchange in April, FENC successfully issues the first Corporate Social Bond, in the hope that the issuance will motivate other local companies to follow suit and contribute to social causes .

The use of proceeds of the Social Bond will be devoted to social projects, which includes supporting the underprivileged, providing epidemic prevention supplies for the fight against COVID-19, encouraging local procurements, and sustaining jobs opportunities during pandemics. The projects are in alignment with FENC’s mission statement – Having innovative thinking that shall bring happiness and prosperity to the community where we serve.

As a subsidiary of China Development Financial Holdings (CDFH), KGI Securities acts as the sole lead manager for the debut Social Bond issued by FENC. The successful launch by a local corporation marks a new milestone in the development and progress of sustainable bond market. KGI Securities is fully aligned with the sustainable finance roadmap outlined by regulators and committed to guiding companies to apply raised funds in investment projects that benefit the society and the environment.

KGI Securities is a prolific underwriter and active player in the sustainable bond market. In the past few years, KGI Securities has acted as the Lead Manager in the issuance of first green bonds by CPC, Taipower, FENC, and Taipei branch of Crédit Agricole CIB. By helping enterprises and financial institutions raise funds and flourish in the capital market, KGI Securities actively participates in the development of sustainable bond market. As a responsible player of the financial sector, we also strives to make an impact and contribute to sustainable development, which fully aligns with the goal set by CDFH to become the industry leader in ESG implementation.

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