The Taipei City Government said it will issue NT$1.8 billion (US$50 million) in 10-year securities tomorrow as it plans to securitize the rental income received from four city-owned plots of land in Xinyi District.
The four plots are known by their code-names: A9, A12, A15 and B5. Tenants include large enterprises such as Shinkong Mitsukoshi Department Store (
The coupon rate of the proposed securities will be 2.2 percent and they will be sold at a price of NT$50 million per unit, the department said.
The department said that issuing the securities is expected to help the Taipei City Government improve its finances and fund urgent construction projects.
In addition, the securities will make the city government the first in the nation to issue rent-backed securities, it said.
The city government said it had entrusted First Commercial Bank (
Taiwan Ratings Corp (中華信評), the local arm of Standard & Poor's, will offer its rating recommendation on the proposed securities, the department said.