Cathay United has priced Taiwan's first ever offshore lower tier 2 dollar denominated bond, raising $500 million from a 15 non-call 10-year step up bond deal via sole lead manager JPMorgan. The deal was launched through Cathay's offshore branch in order to circumvent Taiwan's 20% withholding tax regulation on coupon payments.
Cathay is the second ever Taiwanese bank to access the international sub debt market following Chinatrust's $500 million perpetual step-up ten deal earlier this year.
The Baa1A- deal priced inside of the initial guidance first presented to investors last week at roadshows in Hong Kong and Singapore. Pricing was fixed at 99.977% on a...
