Taipei, Deutsche Bank 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
“This latest international bond issue contributes to our efforts in developing Taiwan as an important capital market,” says Sean Chen, chairperson of financial supervisory commission. “We believe our focus on streamlining the market mechanism and discipline will continue to attract international financial institutions issuing foreign currency bonds in Taiwan”
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.
D.C.