Nomura, Credit Agricole Sell Bonds in Taiwan as Diversity Sought

Nomura Holdings Inc. (8604) and Credit Agricole SA (ACA) are selling their first U.S. dollar-denominated bonds in Taiwan as the local regulator seeks to diversify international issuance.

Nomura’s U.K. unit, Nomura Bank International Plc, plans to sell $325 million of 30-year zero-coupon bonds on Aug. 12 while Credit Agricole’s $270 million of 20-year securities will be issued in two lots on Aug. 13 and Aug. 15, according to a statement from GreTai Securities Market.

“Issuance of dollar bonds is expected to continue its hot trend in the second half of the year,” GreTai said in a statement on its website today. Recent “lively” issuance demonstrates measures to encourage overseas companies to issue foreign currency-denominated bonds in Taiwan have been effective, GreTai said.

The proposed sales come after Taiwan’s legislature passed a rule in May that excludes locally issued foreign-currency bonds from insurance funds’ cap on overseas investments. Taiwan’s central bank and its financial regulator also called for more international companies to sell Formosa bonds -- yuan-denominated bonds sold in Taiwan -- as the island seeks a greater variety of issuers.

More than $3 billion of foreign-currency international bonds have been sold this year compared with over $7 billion in the entire period from 2006 until now, according to GreTai’s statement.

Nomura’s dollar callable bonds yield 4.95 percent, according to the statement. Credit Agricole’s first note will pay a 4 percent coupon and the second zero-coupon debenture, a 4.5 percent yield.

To contact the reporter on this story: Regina Tan in Hong Kong at rtan87@bloomberg.net

To contact the editors responsible for this story: Katrina Nicholas at knicholas2@bloomberg.net Phani Varahabhotla

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.