CPC, Taiwan Power, Formosa Group to Issue NT$60 B. Corporate Bonds

Taipei, July 18, 2011 (CENS)--To lock in long-term low-interest funds, Taiwan's leading business groups are scrambling to issue corporate bonds in the second half totaling NT$60 billion, with Formosa Plastics Group (FPG) and the state-run CPC, Taiwan, Taiwan Power Company to evade further hikes of benchmark rate by the Central Bank.

CPC recently issued secured corporate bonds totaling NT$17 billion to mature in five, seven and 10 years, making it the first issue of such bonds by the state-run oil refiner this year.

Taiwan Power plans to issue NT$30 billion in corporate bonds soon, with the total bonds to be issued by these two state-run firms to reach close to NT$50 billion.

In the private sector, the FPG's four major subsidiaries, including Formosa Plastics Corp., Nan Ya Plastics Corp., Formosa Chemical & Fibre Corp. and Formosa Petrochemical Corp., will issue corporate bonds exceeding NT$10 billion, with domestic banks holding ample liquidity eager to underwrite such bonds.

A domestic securities firm predicts the amount of corporate bonds to be issued will top NT$240 billion with bank debenture totaling between NT$150 billion and NT$160 billion this year.

According to statistics compiled by a bond underwriter, Taiwan's businesses issued NT$138.5 billion in corporate bonds, with major issuers being FPG and Taiwan Power in the first half of this year.