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The Financial Supervisory Commission of ROC (FSC) announced a rule change on 3 July 2012 to allow domestic public companies to issue RMB bonds directly in overseas markets. To issue offshore RMB bonds, a domestic public company should follow the "Regulations Governing the Offering and Issuance of Overseas Securities by Issuers" and relevant regulations, i.e. submit the "Registration to Offer and Issue Overseas Corporate Bonds" together with the required supporting documents, and may proceed with the issuance after the registration becomes effective.
When filing for issuing of offshore RMB bonds, the domestic public company is required to additionally submit an undertaking letter stating that "the RMB fund raised overseas will be deployed offshore and not in Taiwan by any means " and the plan for sources of funds to settle maturing bonds.
According to the FSC, domestic public companies will not be subject to restriction on place of issuance of the offshore RMB bonds and Offshore Banking Unit (OBU) of Taiwanese banks may underwrite such offshore RMB bonds. Given the RMB deposits at Taiwan OBUs have reached 13.84 billion RMB, Taiwan OBUs will be encouraged to invest in the offshore RMB bonds issued by Taiwan public companies.
