Chunghwa Telecom to Issue Sustainable Bond Fulfill Sustainable Development

Rhea-AI Summary

Chunghwa Telecom (CHT) announced plans to raise up to NT$10 billion through unsecured corporate bonds in Taiwan. The funds will support business developments focused on sustainability, including investments for environmental protection and social initiatives aligned with the United Nations Sustainable Development Goals. The Company has received multiple awards for its ESG efforts, such as a decade of inclusion in the Dow Jones Sustainability Index. Despite a strong credit rating of 'AA' from S&P Global Ratings, the Company seeks to further its sustainable goals through this bond issuance.

Positive

• Planned issuance of NT$10 billion in corporate bonds to finance sustainability initiatives.
• 10 consecutive years in the Dow Jones Sustainability Index highlights strong ESG performance.
• Strong credit ratings maintained at 'AA' and 'twAAA' confirm solid financial standing.

Negative

• None.

TAIPEI, Jan. 25, 2022 /PRNewswire/ -- Chunghwa Telecom Co., Ltd. (TAIEX: 2412, NYSE: CHT) ("Chunghwa" or "the Company) today announced that its Board of Directors (the "Board") resolved to raise up to NT$10 billion of unsecured corporate bonds in Taiwan. The proceeds will be used to finance business developments including investments for environmental protection or social development. The Company aims to achieve its Sustainable Development Goals through the integration of business operations and finance plans, such as sustainable bonds.

Chunghwa has leveraged various resources to accomplish its brand spirit of "Always Ahead" on the three fronts of Environmental, Social, and Governance ("ESG") and achieve the United Nations Sustainable Development Goals. The Company has won numerous accolades, such as 10 consecutive years of inclusion in the Dow Jones Sustainability Index (DJSI) and receiving the Asia ESG Corporate Awards 2021-Jade Award (highest distinction) and Capital Finance International Corporate Governance Award 2021 – Best Telecom Holding Governance- Asia, among many other domestic awards focused on excellence in the area of sustainability.  At the same time, Chunghwa is the first domestic telecom operator to obtain both ISO 14067 and ISO 14046 environment management certifications by instituting sustainable supply chain management. Moreover, the Company is driving the promotion of "5G No Plastic Action," encouraging both Chunghwa employees and local residents to adopt sustainability beliefs and reduce plastic waste in everyday life.

Last November, S&P Global Ratings and Taiwan Ratings Corp. maintained Chunghwa's long-term issuer credit ratings at 'AA' and 'twAAA,' respectively, which affirms the Company's credit rating is of the highest ranking and the only one in the telecom sector around the world. With a solid business foundation and financial strength, Chunghwa issued its first corporate bond in 2020 with its 5-year and 7-year tranches securing best rates ever in the domestic bond market at that time. Moving forward, the Company will continue to use the funds raised through the issuance of sustainable bond to achieve its sustainable development goals.

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SOURCE Chunghwa Telecom

FAQ

What is Chunghwa Telecom planning to do with the NT$10 billion bond issuance?

Chunghwa Telecom plans to use the NT$10 billion raised from bond issuance for business developments focused on environmental protection and social initiatives.

What recognition has Chunghwa Telecom received for its sustainability efforts?

Chunghwa Telecom has been included in the Dow Jones Sustainability Index for 10 consecutive years and received the Asia ESG Corporate Awards 2021.

What are the credit ratings of Chunghwa Telecom?

Chunghwa Telecom has a long-term issuer credit rating of 'AA' from S&P Global Ratings and 'twAAA' from Taiwan Ratings Corp.

How does Chunghwa Telecom plan to achieve its Sustainable Development Goals?

Chunghwa Telecom aims to achieve its Sustainable Development Goals through the integration of business operations and finance plans, including the issuance of sustainable bonds.