Hana Bank has successfully returned to the Formosa bond market after nearly seven years, issuing $300 million in foreign currency funding.
On July 27, Hana Bank announced the issuance of $300 million in five-year floating rate notes (FRNs) in the Formosa bond market. This marks the bank's first issuance since June 2019, when it issued $400 million.
The final issuance rate was set at 68 basis points above the Secured Overnight Financing Rate (SOFR), which is 27 basis points lower than the initially proposed spread of 95 basis points. The bank explained that the issuance occurred below the psychological resistance level of 70 basis points in the Taiwan Formosa bond market.
Formosa bonds are issued by foreign financial institutions or companies in Taiwan's capital market in currencies other than the New Taiwan Dollar. They are utilized as a means to diversify foreign currency funding, securing stable investment demand from a small number of key institutional investors.
Prior to the issuance, Hana Bank conducted investor briefings for major investors in Hong Kong and Taiwan. Despite increased volatility in the global financial markets due to geopolitical instability in the Middle East, the bank received valid orders exceeding three times the planned amount, totaling $980 million.
A Hana Bank official stated, "Despite the expanded market volatility, we secured foreign currency funding under competitive conditions based on strong investor interest. We will continue to diversify our foreign currency funding sources through enhanced communication with investors and issuance strategies tailored to market conditions."
On July 27, Hana Bank announced the issuance of $300 million in five-year floating rate notes (FRNs) in the Formosa bond market. This marks the bank's first issuance since June 2019, when it issued $400 million.
The final issuance rate was set at 68 basis points above the Secured Overnight Financing Rate (SOFR), which is 27 basis points lower than the initially proposed spread of 95 basis points. The bank explained that the issuance occurred below the psychological resistance level of 70 basis points in the Taiwan Formosa bond market.
Formosa bonds are issued by foreign financial institutions or companies in Taiwan's capital market in currencies other than the New Taiwan Dollar. They are utilized as a means to diversify foreign currency funding, securing stable investment demand from a small number of key institutional investors.
Prior to the issuance, Hana Bank conducted investor briefings for major investors in Hong Kong and Taiwan. Despite increased volatility in the global financial markets due to geopolitical instability in the Middle East, the bank received valid orders exceeding three times the planned amount, totaling $980 million.
A Hana Bank official stated, "Despite the expanded market volatility, we secured foreign currency funding under competitive conditions based on strong investor interest. We will continue to diversify our foreign currency funding sources through enhanced communication with investors and issuance strategies tailored to market conditions."
* This article has been translated by AI.
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