Taiwan’s Fubon updates 2014 plans to issue financial debentures

By Marisa Wong

Madison, Wis., Nov. 5 – Fubon Financial Holding Co. announced that Taipei Fubon Bank revised its 2014 plans to issue financial debentures.

In June the bank said it planned to issue a total of NT$20 billion of subordinated financial debentures this year. The debentures would have maturities of at least two years.

The bank issued NT$3.7 billion of 1.98% subordinated debentures due 2024 in September, as previously reported.

The remaining NT$16.3 billion of the original proposal will be changed to $520 million of senior and subordinated debt, with the amount of subordinated debt capped at $300 million.

Instead of face amounts of NT$1 million, NT$5 million, NT$10 million and NT$50 million, new bonds will have face amounts of $1 million.

In addition, the senior financial debentures will have maturities of 20 to 30 years and a call option, and the subordinated financial debentures will have maturities of 10 to 20 years.

The revised plan is meant to raise the bank’s mid-term and long-term U.S. dollar funding source, manage its funds with flexibility and enhance its capital level.

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

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