Teco to list corporate bonds
Motor and home appliance provider Teco Electric & Machinery Co (東元電機) is to list 300 million Chinese yuan (US$48.4 million) in corporate bonds on the local over-the-counter (OTC) market today, financial adviser HSBC Taiwan said on Saturday. The listing of Teco bonds will follow listings of 1 billion yuan in bonds by Chinatrust Commercial Bank and 500 million yuan in bonds by textile maker Far Eastern New Century Co (遠東新世紀) on the OTC market on March 12 and Thursday respectively. Yuan-denominated bonds have been allowed to be sold in Taiwan since Feb. 6, when a cross-strait currency clearing mechanism was put in place which allows banks operating in Taiwan to offer yuan-denominated services. HSBC said Teco’s yuan-denominated bonds, which will have a maturity of three years, carry a coupon rate of 3 percent. Bond buyers will be paid interest once a year, the bank said. Teco’s bond sale is aimed at raising long-term funds, HSBC said, adding that the issuer will use the money as working capital to help strengthen the financial structure of its overseas subsidiaries.
Tool exports down: DGBAS
The nation’s machine tool exports last month were NT$9.5 billion (US$318.76 million), down 13.2 percent from the previous year, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said on Thursday. In the first four months of this year, machine tool exports fell by 20.1 percent to NT$32.3 billion from a year ago, the DGBAS said in a statement posted on its Web site. Exports to China, the largest export destination of the sector, last month declined 7.6 percent year-on-year to NT$3.6 billion and fell by 19.5 percent year-on-year to NT$10.8 billion in the first four months, it said.