Taiwan's FHCs Increase Capital for Overseas Expansion

To expand global operations, Taiwan's five financial holding companies (FHCs), including Cathay Financial Holding Co., Fubon Financial Holding Co., Shin Kong Financial Holding Co., Taihsin Financial Holding Co., and E. Sun Financial Holding Co., have or plan to raise capitalization this year.

Such capital increases are reportedly for M&As of financial institutions abroad, but mostly in Southeast Asia. Among the said five FHCs, Taihsin and E. Sun have already completed capital increase with the former floating 500 million shares to raise NT$6 billion (US$200 million), and the latter raising  NT$10.5 billion (US$350 million).

So far E. Sun has established 11 footholds in six countries and applied to set up a subsidiary in Sydney, Australia, and will upgrade its representative office in Myanmar to branch.

Cathay's board has recently approved the proposal of increasing its capital by NT$50 billion (US$1.67 billion), to be used to expand its operations in Southeast Asia. Fubon reportedly will also increase NT$50 billion (US$1.67 billion) in capital this year, aiming to add footholds in Southeast Asia to reinforce strength there. (JL)