Verizon Communications issued a $1.475 billion 30-year non-call three bond at 4.95 percent, the largest Formosa issue of the year so far. Also last week, Apple was rumoured to be sounding investors for a potential $1 billion 30 non-call three, indicated at a yield in the 4.3 percent area, TAIPEI -- Taiwan has announced new rules on locally issued foreign currency-denominated bonds, although analysts say the tighter regulation is unlikely to dampen appetite for these so-called Formosa bonds. On Wednesday, the Insurance Bureau of the Financial Supervisory Commission quietly The Formosa market had experienced a slowdown in 2017, during which although 99% of Formosa bonds sold were denominated in U.S. dollars, there were $40 billion Formosa bonds issued as compared to a record $322 billion of dollar-denominated debt issued by issuers out of Asia ex-Japan. Formosa bonds seem to be a good fit for Taiwan’s life insurers: The bonds must be rated triple-B or higher, and yields lately are topping 4%. Indeed, Taiwanese life insurers, with more than US$600 billion in assets, own about 80% of outstanding Formosa bonds. Taiwan Government Bond 10y Generally, a government bond is issued by a national government and is denominated in the country`s own currency. Bonds issued by national governments in foreign currencies are normally referred to as sovereign bonds.
Feb 14, 2019 Formosa bond issuance has been hit by tightening regulations created when authorities last year stamped down on “Formosa bonds” “Taiwan insurers in general get returns between 4 per cent and 5 per cent from Oct 16, 2018 Following a global habit for nicknaming foreign-currency debt, Taiwan's “ Formosa bonds” use the 16th century Portuguese name for the country Oct 21, 2019 South Korea, Japan and Taiwan's holdings of U.S. dollar corporate with high savings rates have accumulated more dollar debt, Taiwan in in Taiwan, where such securities are known as Formosa bonds, after Giving Americans Money to Offset Coronavirus Impact Gains Trump Administration Support.
Taiwan has picked 10 financial institutions as market makers for its offshore yuan bond market, and aims to launch a yield curve for corporate bonds in May, a source with direct knowledge of the This is backed up by the figures which show that in the year to June 2016, borrowers had issued $81bn of Formosa bonds of which 80% were private placements. Issuance in the US-dollar denominated Formosa bond market is on track to fall to a three year low in 2018 as new regulation throttles both supply and demand. In the three quarters to September 30, international issuers raised US$29.7 billion in Taiwan, down from US$35.3 billion and US$36.8 billion in the same period of 2017 and 2016
Formosa bonds seem to be a good fit for Taiwan’s life insurers: The bonds must be rated triple-B or higher, and yields lately are topping 4%. Indeed, Taiwanese life insurers, with more than US$600 billion in assets, own about 80% of outstanding Formosa bonds.
Issuance in the US-dollar denominated Formosa bond market is on track to fall to a three year low in 2018 as new regulation throttles both supply and demand. In the three quarters to September 30, international issuers raised US$29.7 billion in Taiwan, down from US$35.3 billion and US$36.8 billion in the same period of 2017 and 2016 No stopping for Taiwan’s Formosa bond market Channel. Share this article. Few fixed income markets in Asia are driven as much by whims of regulators as Taiwan’s international Formosa bond market. Virtually non-existent until 2014, the market is now one of the largest US-dollar bond markets in Asia. While attractive from a yield Standard Chartered expects a strong year of issuance in the Formosa bond market, with total issuance of formosa bond to reach 60 billion yuan this year. The large amount of local savings has increasingly attracted foreign companies to issue bonds in the Taiwan market. The value of issues of Formosa bonds (foreign-currency bonds that are issued by a foreign entity in Taiwan) rose to US$26bn in 2014, from US$2bn the year before.