Citigroup yesterday reported that Taiwanese companies accounted for 87 percent of the total US$9.3 billion in capital raised in the form of American depositary receipts (ADRs) by non-US companies last year.
After last year's surge of capital-raising, benchmark issuers from Taiwan, China and South Korea are still very attractive to global investors this year, Sanjeev Nanavati, New York-based managing director of Citibank depositary receipt services, said yesterday in Taipei.
China and India will take the lead in raising global capital this year, Nanavati said. He estimated that China would raise about US$15 billion this year and India US$10 billion.
Taiwanese issuers favored convertible bonds last year to raise capital, but Nanavati predicted that ADRs or global depository receipts (GDR) will be the preferred capital-raising tool this year since interest rates may climb.
Nanavati advised companies raising more than US$500 million to issue ADRs, while those raising less than that amount should go for GDRs, which have lower operational fees and take less time to complete.
According to Citigroup, Taiwan Semiconductor Manufacturing Co (
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