To deepen public understanding of sustainability and engage investors on multiple fronts, FENC takes an aggressive approach towards the capital market with diversified innovations and financing channels. On May 24, 2021, FENC issued  NT$1.2 billion of social bonds, the first among Taiwanese corporations. The funds are being used towards social investments such as empowering the underprivileged and providing pandemic control goods. The funds are also allocated towards local procurement and employment assistance for small and medium enterprises during the pandemic. Being widely received by investors, the social bond was approved with a record-low coupon rate.

Sustainable finance is gaining momentum in the international community. However, most efforts are from the financial, service and governmental sectors. As a private corporation, FENC initiated multiple sustainable financing innovations. It is the only corporation in Taiwan to have issued 3 classes of sustainable bonds – green, sustainability and social bonds. The Company established an investment framework based on the 17 sustainable development goals (SDGs) from the United Nations and integrated it with FENC’s sustainable development guidelines. The bonds issued are in line with international standards. FENC is the only non-financial institution in Taiwan inducted into the Sustainable Bonds Database of International Capital Market Association in Taiwan, marking a momentous milestone for Taiwan with the presence of its Taiwanese capital influence on international sustainable finance.

OPTC has long been focusing on carbon and waste reduction as well as recycling. The plant ties its corporate operation with sustainable performance, entering into a loan agreement with an ESG margin ratchet  where borrowers may take advantage of a lower interest rate when meeting ESG credentials in GHG emissions, energy and water conservation as well as corporate social responsibilities. OPTC is the first petrochemical corporation in Taiwan to secure a sustainability-linked syndicated loan, which is backed by enthusiastic offerings from a consortium of 14 financial institutions, including the 8 state-funded banks. OPTC secured the loan within 2 months and signed the loan agreement on August 30, 2021.

Already spearheading the development of circular economy, FENC is now leading the promotion of sustainable finance in Taiwan with innovative momentum, creating a win-win for the governmental, corporate and investment sectors. For these efforts, FENC won the Gold Award from Taiwan Sustainability Action Awards in 2021. It is the hope that these actions will inspire more corporations to join in and contribute to social development.