Taipei to issue rent-backed securities

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 (新光三越百貨), Shin Kong Life (新光人壽) and Far Eastern Department Store (遠東百貨), the city government's Department of Finance said.

coupon rate

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 (第一銀行) to issue the securities, with Polaris Securities Co (寶來證券) serving as the underwriter.

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.