|Banks to Sell Debt in Taiwan|
Bank of Communications Ltd and Agricultural Bank of China Ltd both have applied to issue renminbi-denominated bonds in Taiwan, financial authorities for the island. BOCOM and ABC could become the first banks from the Chinese mainland to issue renminbi-denominated bonds and the equivalent of Hong Kong's Dim Sum bonds - in Taiwan, as early as this week.
BOCOM has applied to sell 1.2 billion yuan of the renminbi-denominated bonds through its branch in Hong Kong, The Wall Street Journal reported. Its bonds are of two types: three-year bonds with a coupon interest rate of 3.4 percent and five-year bonds with a coupon interest rate of 3.7 percent. ABC plans to issue 1 billion yuan in bonds through the Medium Term Note system by its branch in Hong Kong.
State-owned and commercial banks and their overseas branches will be able to issue renminbi-denominated bonds in Taiwan after gaining the approval of the Taiwan OTC Exchange, also known as Gre Tai Securities Market, a major market for the issuance and exchange of financial products in the region, the financial supervisory commission in Taiwan was quoted as saying by local media. Twenty banks from the Chinese mainland are qualified for the issuance. Four major mainland banks have made inquiries about being qualified to issue bonds on the island. The commission estimates that bonds from the mainland will total 8 billion yuan.
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Published on our website on November 28, 2013