Taiwan's Cathay United Bank has launched a tender to buy back up to $125 million of its $500 million 5.5% subordinated bonds due in 2020 at a discount versus par of up to 18%. Several Asian banks have been buying back outstanding debt in the open market over the past six months to take advantage of the depressed prices to reduce their leverage, improve their core capital ratios and book a bit of a profit in the process. However, this is the first Asian investment-grade company to set out to buy bonds in greater size through a tender, following the example of non-investment grade companies like Galaxy Entertainment and Nine Dragons Paper.
The timing of...
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