Newsletter
Legal Entities Incorporated in Mainland China Allowed to Issue Renminbi-denominated Straight Corporate Bonds in Taiwan to be Offered to Qualified Institutional Investors
To boost the Formosa Bond market in terms of issue size and the range of market participations and to provide investors with the channels for investing in Renminbi-denominated products and repatriating overseas funds, the Financial Supervisory Commission (FSC) on 27 November 2013 permitted legal entities incorporated in Mainland China to issue Renminbi-denominated straight corporate bonds in Taiwan to be offered to qualified institutional investors.
I、 Qualifications of Issuers:
1. Policy banks, state-owned commercial banks and joint-stock commercial banks in the territory of Mainland China and their overseas branches or subsidiaries.
2. Taiwan financial institutions' subsidiaries incorporated in Mainland China.
3. Mainland China-incorporated subsidiaries that have been included in the consolidated financial statements of TWSE or GTSM-listed Taiwanese companies.
II、 Targeted Investors: Renminbi-denominated straight corporate bonds issued in Taiwan are to be offered only to qualified institutional investors.
III、 Issuance Procedures:
1. The issuer shall obtain a consent letter from the GreTai Securities Market (GTSM) before the bond issuance and, together with the relevant information, file with the Central Bank of the Republic of China and the FSC and, within one month after obtaining the consent letter, apply to the GTSM for registration to be traded over-the-counter.
2. Other procedures and relevant matters shall be handled in accordance with the FSC's regulations governing foreign currency denominated straight corporate bonds issued by foreign issuers and offered only to qualified institutional investors.