Deutsche Bank launches bond in Taiwan
Taipei, Deutsche Bank today announced it has launched its second bond issue in Taiwan, which offers investors a fixed interest rate of 3% - a comparatively higher rate than what is available locally on USD deposit. Issued by Deutsche Bank Frankfurt, the 3-year USD bonds will be listed on Taiwan’s Gre Tai Securities Market. Both institutional and retail investors are able to participate in the issue.
The bond provides investors with a stable yield and expected investment grade rating of Aa1 from Moody’s Investor Services. The bond is purely vanilla and does not feature any structured characteristics to enhance yield.
Denominated at USD10,000 per unit, investors may subscribe for one or more units.
Features of the bond include:
* Strong credit rating: expected investment grade rating of Aa1 by Moody’s Investor Services
* Full transparency and liquidity: ability to trade in an open secondary market
* Higher yield: among equally-rated issuers, the annually payable fixed coupon of 3% is higher than current USD fixed deposit rates available in Taiwan
* Wide distribution: six designated banks and brokerages participating
Sean Chen, Chairperson of Financial Supervisory Commission, said: “This latest international bond issue contributes to our efforts in developing Taiwan as an important capital market. We believe our focus on streamlining the market mechanism and discipline will continue to attract international financial institutions issuing foreign currency bonds in Taiwan.”
Chi-Hsien Lee, Director General of the Securities and Futures Bureau, Financial Supervisory Commission, said: “Taiwan’s creation of an international platform where foreign institutions can tap Taiwan’s domestic capital market provides a welcome alternative funding source for companies. It also offers investors a means to diversify their portfolios and trade in an open, liquid and transparent OTC market.”
Kuang-Si Shiu, President of Mega ICBC, said: “We are pleased to be the lead underwriter for Deutsche Bank’s second Formosa Bond issue. This product provides a good alternative investment in view of the strong credit of the issuer and low interest rate. We are confident that this product will be well-received in the market.”
Cynthia Chan, Managing Director of Deutsche Bank Global Markets in Taiwan, said: “This represents an important contribution to the development of Taiwan’s capital markets. We will continue to work closely with the Financial Supervisory Commission, the Securities and Futures Bureau, the Central Bank and other regulators to develop the International Bond Board. We believe this fund-raising avenue is an attractive source of funding for domestic and international issuers and we are confident of its future success.”
Deutsche Bank’s bond issue will be distributed to investors through six agents: Mega Bank; Chang Hwa Bank; First Commercial Bank; Taiwan Cooperative Bank; Shanghai Commercial Bank; and Deutsche Bank Taipei Branch.
The bond is available for subscription starting from 13 May to 3 June 2009. The bonds are scheduled for listing on the Gre Tai Securities Market on 4 June, 2009.
About Deutsche Bank
Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With 80,277 employees in 72 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.
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