Taipei Exchange

Due to the COVID-19 driven global recession, market interest rates have decreased, which allowed issuers to benefit from lower financing costs through the bond market. Total accumulated issuance amount of domestic corporate bonds and financial debentures reached NTD 1 Trillion.

Domestic corporate bond market has shown an unprecedented boom. As of December 29, straight corporate bond issuance was NTD 752.5 billion, an increase of 104.5%; convertible bond issuance was NTD 69.6 billion, growing 71%. Issuance amount of financial debentures also broke 5-Year high, reaching NTD 192.04 billion.

Under the low interest rate environment, issuers have an incentive to hedge against future interest rate increases by issuing bonds to lock in medium to long term capital costs. It is expected that the bond market will continue to be strong in the future if the ultra-low interest rate environment continues.