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 GForeign banks look favorably at Taiwan’s bond market, a robust bond market is expected in the second half of the year – the first NTD bank debenture issued by a foreign bank and the fourth international bonds are to be launched on GTSM
Deutsche Bank AG, Taipei Branch continues to look favorably on the development and potential of Taiwan’s bond market. Since acting as the general agent for the first USD-denominated international bonds issued in Taiwan by its head office Deutsche Bank AG in 2006, the Taipei Branch itself has applied to the Banking Bureau for approval to issue NTD-denominated bank debentures earlier this year, the first foreign bank in Taiwan that issues NTD-denominated bonds. The bank plans to issue in total NT$1 billion bonds that will mature in 10 years. The bond will pay a fixed rate of 1.62% in the first three years, and then a floating rate in the last seven years at 90-day CP + 10BP. The bond has received a highest rating (AAAtwn) from Fitch Ratings Taiwan and will begin trading on GTSM on October 15. As we understand, with the global interest rates remaining low and plenty of funds on the market, there are several other foreign banks that also plan to issue NTD-denominated bonds. With more foreign issuers participating in our bond market, it will help increase bond issuance and enhance the international visibility of our bond market, and hopefully attract more foreign investors into the bond market. With respect to our international bond market, BNP Paribas has already been approved by the Central Bank and the Securities and Futures Bureau of the Financial Supervisory Commission to issue AUD-denominated international bonds in Taiwan. BNP Paribas has completed the pricing recently and plans to issue and trade on GTSM on November 5, becoming the fourth foreign currency denominated bonds listed in Taiwan. BNP Paribas plans to offer 190 million AUD this time, and will increase the offer up to 300 million AUD (approximately NT$8.8 billion) if it is overbooked. This bond is a fixed-rate senior bond with a tenor of three years and a coupon rate of 5.75%, and has a Moody’s rating of Aa1. With minimum subscription unit of 10,000 AUD, this bond is expected to attract a large number of customers who have their money in AUD time deposit. This AUD bond of BNP Paribas will be open to subscription between October 19 and November 4. Investors who are interested in subscribing the bond may contact its underwriters, including Mega Bank, Taiwan Cooperative Bank, First Commercial Bank, Shanghai Commercial & Savings Bank, Hua Nan Bank, and Chang Hwa Bank.
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