Print

Mail

wiki links

Cosmos offers cash-advance card bonds

The Ministry of Finance yesterday gave its approval to Cosmos Bank Taiwan's (萬泰銀行) plan to start marketing US$340 million worth of bonds backed by its George & Mary cash-advance card loans to overseas and domestic investors.

"This will be the nation's first-ever sale of bonds backed by cash-advance card loans to enter international markets," Huang Tien-mu (黃天牧), the ministry's deputy director-general of monetary affairs bureau, told a press conference yesterday afternoon.

The US$340 million deal, to be managed by Deutsche Bank, includes the issuance of US$255 million in beneficiary certificates to overseas investors, US$45 million in subordinate bonds to enhance the bank's credit and the remaining bonds to modulate the cash-advance card's future cash flows, which tend to fluctuate.

In light of its high spread of cash-card loans, the bank will be able to issue an additional US$35 million worth of bonds to designated local investors, Huang said.

The ministry, in a written statement, yesterday lauded the bank's sale to improve bank assets and reinforce its financial structure while upping its business competitiveness internationally.

Cosmos' executive vice president Shih Kung-liang (施坤良) had said previously that the bank plans to start organizing road shows to meet investors in Hong Kong, Singapore, London and Switzerland, as well as locally.
This story has been viewed 1818 times.