COUNTRY REPORT TAIWANThe issue was launched after markets
closed last Monday at a base size of
US$400m. Strong investor demand allowed
joint bookrunners Bank of America Merrill
Lynch, Citigroup and HSBC to exercise fully a
US$100m option for a size increase.
The CBs came with a 0% coupon and
yield, and priced at a fixed conversion
premium of 30.04%. This is the highest
premium for Taiwanese CBs since United
Microelectronics sold zero-coupon
US$500m CBs in 2011 at a negative
0.25% yield and a 39% conversion
premium.
Hon Hai attracted demand of close
to US$3bn as more than 120 investors
participated.
The major supplier to Apple came
to the market last Monday after news
reports of strong demand for the iPhoneX, which started taking pre-orders on
October 27.
The CBs are denominated in US dollars,
but investors will take currency risk on the
NT dollar. They traded at around 101.8 in
the secondary market.
Credit spread was assumed at 100bp,
implied volatility at 18.9 and bond floor at
95.2.
The company will use the proceeds to
purchase raw materials overseas.Top bookrunners of all Taiwan dollar bonds
1/1/17 – 31/10/17
Amount
Name Issues NT$(m) %
1 Yuanta Financial 23 94,025.0 33.6
2 KGI Financial 16 54,525.0 19.5
3 Masterlink Sec 13 38,425.0 13.7
4 Capital Sec 6 31,500.0 11.3
5 Cathay Financial 3 21,975.0 7.9
6 Sinopac Holdings 4 13,050.0 4.7
7 Taiwan Cooperative 9 6,810.0 2.4
8 Fubon Financial 2 6,800.0 2.4
9 Taiwan Financial 2 5,500.0 2.0
10 First Taisec Sec 1 3,300.0 1.2
Total 68 280,010.0
*Market volume
Proportional credit
Source: Thomson Reuters SDC Code: AS11
Top bookrunners of Taiwan syndicated loans
1/1/17 – 31/10/17
Amount
Name Deals US$(m) %
1 Bank of Taiwan 33 3,089.1 16.8
2 Taiwan Cooperative 30 2,084.2 11.3
3 Mega Financial 27 1,991.2 10.8
4 Land Bank of Taiwan 25 1,772.0 9.6
5 Fubon Financial 19 1,715.5 9.3
6 ANZ 2 1,250.0 6.8
7 Chang Hwa Commercial 13 889.2 4.8
8 Taishin International 11 871.1 4.7
9 Hua Nan Financial 16 671.9 3.7
10 CTBC Financial 10 660.8 3.6
Total 111 18,421.0
* Based on market of syndication and market total
Proportional credit
Source: Thomson Reuters SDC Code: S19bTaiwan global equity and equity-related
1/1/17 – 31/10/17
Amount
Name Issues US$(m) %
1 KGI Financial 21 677.0 15.8
2 Fubon Financial 15 510.4 11.9
3 Citigroup 2 441.6 10.3
4 UBS 3 369.4 8.6
5 Yuanta Financial 9 358.7 8.4
6 Nomura 2 283.8 6.6
7 Sinopac Holdings 10 261.6 6.1
8 JP Morgan 1 236.3 5.5
9 DBS 2 215.9 5.0
10 Mizuho 1 153.5 3.6
Total 125 4,280.6Source: Thomson ReutersS034334/5-16CONTRIBUTE CONTENT.
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