Chinatrust Commercial Bank set a new landmark for Taiwanese issuers late on Thursday March 10 when it priced its long awaited perpetual step-up ten deal. Launch of the transaction had been delayed for over six months while the bank negotiated with the regulator over the contentious issue of a 20% witholding tax on coupon payments. It finally managed to get round the tax by securing approval to launch the deal through its Hong Kong branch office.
Funds will be used to bolster the bank's capital ratio at a time when consolidation in the Taiwanese financial sector is clearly gathering momentum as the government begins to offload its huge stakes in the...
