Taiwan’s Fubon Life sets initial coupon rate for perpetuals at 3.6%

By Marisa Wong

Morgantown, W.Va., Feb. 6 – Fubon Financial Holding Co. announced that subsidiary Fubon Life Insurance Co., Ltd. set the coupon rate for its upcoming perpetual non-cumulative subordinated corporate bonds.

As previously announced, Fubon Life plans to issue up to NT$20 billion of perpetual bonds in 2018 in one or more tranches. The bonds, which will be callable after 10 years, will be issued at par.

The coupon will be fixed at 3.6% for the first 10 years. If the bonds are not called, the coupon will reset at the end of the 10th year and every 10 years after that. The coupon will be adjusted to the 10-year Taiwan government bond plus a fixed spread of 257.7 basis points.

Proceeds will be used to strengthen the company’s working capital and financial structure, to meet mid- or long-term plans and to raise the company’s RBC ratio.

Fubon is a financial services company based in Taipei, Taiwan.

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