Taipei Exchange

As of 19 January 2021, the outstanding amount of International Bond has reached a peak of USD 186.37 billion (approximately NTD 56.62 trillion) which exceeded the outstanding amount of government bond (NTD 56.59 trillion) and took the largest market share in Taiwan’s bond market.

The International Bond was first launched in 2005. After a two-tier management mechanism was implemented and the relevant regulations were relaxed, the market thrived rapidly during the past 5 years and became attractive and visible to overseas issuers. Last year, because of the COVID-19 driven recession, the Treasury yields slumped, and the buyback amount of the bonds surged up. The needs of refinancing drove the issuance amount of International Bond reached a record high of USD 60.16 billion.

Today, 3 tranches of International Bonds issued by the United Mexican States, BNP Paribas and Soci?t? G?n?rale are listed on Taipei Exchange. Among them, this is the first time the United Mexican States, with a BBB credit rating, issuing its sovereign bond in Taiwan, and is the third foreign central government issuing International Bond here after the State of Qatar and the State of Israel. This issuance totaled USD 3 billion with maturities of 50.25 years, fixed its coupon rate at 3.75% and provided a wanted investment choice to institutional investors. Snice the Treasury yields are expected to remain low, the market scale of International Bond is believed to keep expanding and stay popular this year.