Nomura, Credit Agricole Sell Bonds in Taiwan as Diversity Sought

Nomura Holdings Inc. and Credit Agricole SA 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.

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