Promoting Sustainable Development with Sustainable Finance
As extreme weather patterns grow severe, corporations around the globe are growing more alert regarding climate-related risks. Sustainable finance provides consistent funding for corporations to continue sustainable development, making corporations more willing to devote resources into sustainability transition. FENC issued the first Convertible Bond (CB) in Taiwan in the 1990s. Since then, the Company continues to create benchmarks in innovative financing for the nation. Since 2018, FENC has issued 3 unprecedented sustainable financial products, 2 of which were issued in 2020.
Information disclosed reflects data collected from the reporting year.
FENC Financial Sustainability Declaration
FENC is the leading manufacturer in global green PET industry. The Company strives to build sustainable business model to create harmonious coexistence with the environment. Through green investment, we fully develop the Company’s sustainability development strategy and raise capital to connect with FENC’s sustainability development goals, creating closed-loop circulation of funding source and capital. We have become an innovative benchmark enterprise for sustainability financing in Taiwan, continuing to create win-win for the government, corporations and investors.
FENC’s key financial planning goals
- Forward-looking: Align with global financial trends
- DNA for innovation: Set new benchmark for financial innovation in Taiwan
- Connect the dots: Connect the founding spirits, sincerity, diligence, thrift, prudence, innovation, reaching the goal one step at a time.
Green Financing to Sustainability Financing
In 2017, Financial Supervisory Commission of the Executive Yuan announced Green Finance Action Plan 1.0 in 2017, marking the beginning of green bond market in Taiwan. The initiative improves the environment, facilitates green transformation through corporate financing and guides responsible investment in the capital market.
In 2018, FENC initiated green financing channels and issued the first private sector green bond in Taiwan, continuing the investment and R&D of green products and production in Taiwan.
In 2020, Financial Supervisory Commission connects with international trends and introduced Green Finance Action Plan 2.0. In the past, the commission focused on the environmental aspects of green finance. It is now expanded as sustainable finance, which encompasses ESG. FENC has demonstrated again its unwavering commitment in the pursuit of sustainable development. In September and December 2020, FENC issued 2 sustainable financial products. The move shows support for governmental implementation on green and sustainable financing channels, fulfills green and sustainable philosophy and offers innovative products for investors, creating win-win among all parties.
Offer innovative products for investors
Fulfill green and sustainable philosophy
Support governmental implementation on green and sustainable financing channels
FENC’s financial products from recent years
First among private sectors in Taiwan
January 8th, 2018
First in Asia
September 21st, 2020
First among Taiwanese corporations
December 21st, 2020
Comparing to conventional financial products, which typically require a one-month pre-launch period, green and sustainable financial products require an additional 4 to 5 months. By issuing an array of sustainable financial products, it is FENC’s hope to establish references through concrete actions to attract more manufacturers in the private sector to do the same.
Feature and schedule of FENC’s sustainability-linked loan and commercial paper guarantee
Differing from regular financing approaches, sustainability-linked loan and commercial paper guarantee is linked to FENC’s sustainability performance to fulfill FENC’s 2030 ESG vision.
- FENC’s first sustainability-linked loan commitment is linked to sustainability performance targets to guarantee and issue commercial papers. The margin under the relevant loan agreement may be reduced when the borrower satisfies a pre-determined sustainability performance target.
- This unprecedented financing innovation in Asia was featured by multiple international media agencies, including ecosistent, Environmental Finance, The Asset and Bloomberg.
- FENC’s innovative sustainable financing won Best Sustainability Financing from Triple A Country Awards 2020 held by The Asset magazine.
FENC invited banks with international leading status in green financing to provide medium-term loan proposals, which must be sustainability-linked with innovative structural design.
FENC signed the first sustainability-linked loan commitment with commercial paper guarantee in Taiwan and Asia.
All expenditures for achieving the short, mid and long-term goals in environmental performance targets.
Feature and schedule of FENC’s sustainability bond
By combining sustainable finance with FENC’s Sustainability Strategy Blueprint, it is the hope to join hands with the government and stakeholders to create a virtuous cycle for a future that fosters quality environment for sustainable development in Taiwan and to make seamless connection with the international community.
- Most international issuers of sustainability bonds are in the financial, service or governmental sectors. FENC is a private manufacturer.
- The pre-launch period ended and issuance began within two months after the regulatory enactment.
- The investment framework is based on the 17 UN SDGs and utilization of funds is evaluated based on Sustainability Bond Guidelines issued by International Capital Market Association.
Taipei Exchange (TPEx) issued Taipei Exchange Operational Directions for Sustainability Bonds.
FENC obtains approval for issuing over-the-counter sustainability bond.
FENC issued the first sustainability bond in Taiwan.
Green and social investments:
- Waste reduction performance from waste recycling and reuse
- GHG reduction performance
- Green building (Tpark): Develop smart green park as a demonstration site for sustainable development that is built upon the foundation of environmental sustainability.
Feedback from partners
Sustainable Finance Knowledge
Green / Sustainable financing
Differing from conventional financing approaches, which reviews past financial performance only, green and sustainability financing looks to the future and requires that corporations make specific commitment toward future corporate sustainability performance.
Financial institutions
(e.g. banks)
Green Loan
Capital market
(e.g. investors)
Green Bond
Financial institutions
(e.g. banks)
Sustainability-linked Loan
Capital market
(e.g. investors)
Sustainability Bond, Social Bond, Sustainability-linked Bond
