| Article 8 |
When an issuer applies for sustainable use of proceeds bond accreditation, it shall comply with the following requirements according to the project under the type of sustainable bond accreditation and the type of securities for which it is applying:
- Government bonds and straight corporate bonds: All the proceeds raised by the issuer are to be used for expenditures on the projects, or to pay back debts incurred in the projects. All the proceeds raised by a foreign financial institution are to be used for loans to the projects, for expenditures on the projects, or to pay back debts incurred in the projects.
- Financial debentures: All the proceeds raised by the issuer are to be used for loans to the projects, for expenditures on the projects, or to pay back debts incurred in the projects.
- Beneficial securities or asset-backed securities: All the assets in the asset pool originate from the projects.
- Sukuk (Islamic fixed income security): All the proceeds obtained by the Sukuk obligor(s) are to be used for expenditures on the projects, or to pay back debts incurred in the projects. If the Sukuk obligor is a foreign financial institution, all the proceeds obtained by it are to be used for loans to the projects, for expenditures on the projects, or to pay back debts incurred in the projects.
The meaning of “asset pool” in subparagraph 3 of the preceding paragraph shall be determined in accordance with the Financial Asset Securitization Act.
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| Article 9 |
In "Green project" in these Operation Directions means investment in the following matters, with substantial benefit for improving the environment:
- Development of renewable energy and energy technology.
- Improvement of energy efficiency and energy conservation.
- Greenhouse gas reduction.
- Waste recycling or reuse.
- Agricultural and forestry resource conservation.
- Biodiversity conservation.
- Pollution prevention and control.
- Water resource conservation, purification, or reclamation, recycling, and reuse.
- Other climate change adaptation or matters approved by the TPEx.
A green project mentioned in the preceding paragraph may not be a fossil fuel power generation project. This restriction does not apply, however, to those that meet the technical screening criteria set by green bond standards adopted in customary practice in international financial markets.
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| Article 10 |
"Social project" in these Operation Directions means investment in the following matters, with substantial benefit for society:
- Affordable basic infrastructure.
- Access to essential services.
- Affordable housing.
- Employment generation, and programs designed to prevent and/or alleviate unemployment stemming from socioeconomic crises.
- Food security and sustainable food systems.
- Socioeconomic advancement and empowerment.
- Other matters approved by the TPEx.
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| Article 11 |
An issuer applying for sustainable use of proceeds bond accreditation shall adopt a Bond Framework, which shall include the components listed below:
- Summary of relevant information within the context of the issuer’s overarching sustainability strategy.
- Criteria used for investment project selection.
- Description of the projects and of the evaluation of their green or social benefits.
- Process for project evaluation and selection.
- Plan for management of the proceeds.
- Matters relating to reporting on post-issuance management of proceeds, which shall include a description of the allocation of the proceeds and the substantive environmental benefits of the green projects, the substantive social benefits of the social projects, and the frequency of disclosures and the indicators used to measure the aforesaid benefits.
A review report shall be issued by a reviewer stating that the Bond Framework under the preceding paragraph meets the requirements of these Operation Directions or of customary practice in international financial markets, according to the type of sustainable bond accreditation for which the issuer is applying. If, however, the issuer is a domestic government agency or a state-owned enterprise, the review report may be issued by a domestic governmental organization designated by it.
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| Article 12 |
An issuer of sustainable use of proceeds bonds shall disclose the content of the Bond Framework in the prospectus. However, the issuer may instead disclose the content of the Bond Framework in another issuance document if the issuer is not required to and does not prepare a prospectus in accordance with the Regulations Governing Information to be Published in Public Offering and Issuance Prospectuses, the Regulations Governing Information to be Published in Financial Institution Prospectuses for Offering and Issuance of Securities, or the Regulations Governing Information to be Published in Prospectuses for Public Offerings of Beneficiary Securities by Trustee Institutions and Public Offerings of Asset-Backed Securities by Special Purpose Companies.
Before issuance of the sustainable use of proceeds bonds, the issuer shall disclose the Bond Framework and the review report of Article 11, paragraph 2 through the Internet information reporting system designated by the TPEx.
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| Article 13 |
During the life of the sustainable use of proceeds bonds or the period of allocation of the proceeds raised by the bonds, the issuer shall, within 30 days from the date of public disclosure of the annual financial report, enter the report on the allocation of the proceeds into the Internet information reporting system designated by the TPEx. However, if the issuer has good cause, it may apply to the TPEx to report the information by a regular annual deadline set by the issuer.
After the proceeds of the sustainable use of proceeds bonds have been fully allocated, the issuer shall, within 30 days from the date of public disclosure of the annual financial report—unless the issuer has good cause and has applied to the TPEx for a different deadline set by the issuer—have a reviewer issue a review report on whether the status of allocation of the proceeds conforms to the Framework. If, however, the issuer is a domestic government agency or state-owned enterprise, the review report may be issued by a domestic governmental organization designated by it.
The issuer shall, within the deadline in the preceding paragraph, enter the review report on the status of allocation of the proceeds into the Internet information reporting system designated by the TPEx.
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