Sustainability-linked Loans

In 2023, BOT participated a total of 60 sustainability-linked loans, coordinated 24 cases of them including Taiwan Orsted, AUO, and Winbond Electronics, with an approved amount of NT$103.6 billion.

Green Financing

As of 2023, the total credits granted to green energy related industries was 2661, with a credit balance of NT$425 billion, demonstrating BOT's determination to promote the development of renewable energy and low-carbon transformation of the industry through practical action.

Note: According to the Rewards for Domestic Banks for Handling Six Core Strategic Industries Lending Plans of the Financial Supervisory Committee, green and renewable energy refer to industries related to manufacturing, power and gas supply, construction engineering, transportation and warehousing, science and technology services, etc. of green and renewable energy, among which solar cell manufacturing, offshore wind power, solar photovoltaic are separately disclosed in accordance with the requirements of the Ministry of Finance.

BOT also actively responds to policies, utilizes its core financial functions, and fully promotes six core strategic industries loan projects, supporting key industries in their sustainable development, such as information and digital industries, cybersecurity industry, precision health industry, national defense and strategic industries, green and renewable energy industry, and strategic stockpile industries, assisting industries in obtaining necessary funds and promoting the transformation of Taiwan's economy and industrial structure. The loan balance of six core strategic industries decreased at the end of 2023 compared to the previous year, mainly due to the maturity and repayment of large short-term unconventional loan amounts originally for which some customers had applied.

Growth in loan amounts for six core strategic industries

Sustainable Bonds

To support green energy and respond to the government's green energy development goals, BOT issued a five-year sustainability bond in June 2023 at a scale of NT$1 billion. The funds were limited to the disbursement of green investment projects and investment projects with social benefits, and were fully disbursed in November 2023. The Green Investment Plan is a joint loan project for the construction of solar photovoltaic power generation facilities located in Yunlin County. According to the joint loan project manual, the total installed capacity is 87,834 KW. Based on the solar photovoltaic capacity factor of Taiwan Power Company's Yunlin County, the annual power generation of 1KW is estimated to be 1,239 kWh, and is expected to generate 108.826 million kWh/year. According to the 2022 electricity carbon emission coefficient of 0.495 kilograms per kilowatt hour announced by the Energy Bureau of the Ministry of Economic Affairs, it is expected to reduce carbon dioxide emissions by 53,869 metric tons per year. As of the end of November 2023, a total of 38 social housing joint loans have been invested in, including more than 14,000 households, to provide affordable housing for socially disadvantaged groups by investing in land or development and construction related expenses for social welfare infrastructure.

Investment of BOT's Sustainability-related Bonds

Sustainable Investments

BOT declares to follow the Code of Due Diligence Governance for Institutional Investors of the TWSE Corporate Governance Center and has established Investment Stewardship Principles as the cornerstone of investment and asset management, integrating ESG issues into its investment management business and implementing the spirit of the United Nations Principles of Responsible Investment (PRI).

BOT has always focused on sustainable investment development. In 2023, the head office's investment in sustainable development bonds was NT$34.743 billion, with overseas branches investing approximately NT$1.965 billion in sustainability-related bonds. The balance of BOT's green bond investment in domestic and international sustainable development bonds was approximately NT$14.612 billion, social responsibility bond approximately NT$2.942 billion, and sustainability bond NT$19.154 billion. The total amount of BOT's equity and bond investment in domestic sustainable industries was NT$42.927 billion.

BOT's stock and bond investment amount in sustainability-related industries (green electricity and renewable energy industries) in 2023

Green and Sustainable Time Deposit Projects

Starting from July 2023, the bank has launched the New Taiwan Dollar and US Dollar Green and Sustainable Time Deposit Projects, and used all raised funds for the financing and refinancing needs of BOT's "Green Investment Program" and "Social Benefit Investment Program", enabling customers to support the development of financing enterprises through deposits while also taking into account the low-carbon transformation, guiding funds to play a leading role in promoting overall sustainable economic development.

The project was completed on October 25, 2023, raising a total of five US dollar deposits for the amount of 23 million (equivalent to approximately NT$725 million) and 25 New Taiwan dollar deposits for the amount of NT$1.55 billion, totaling approximately NT$2.275 billion. All funds were used for projects with green and social benefits. In 2023, BOT provided offshore wind power financing of NT$1.06 billion and welcomed Taiwanese businesses to invest in a project totaling NT$1.215 billion.

Investments for Green and Sustainable Time Deposit Projects of BOT