Taiwan's first commercial mortgage-backed security yesterday sold out during its first trading day on the Gretai Securities Market (
The sale of seven-year bonds backed by an office building in downtown Taipei aims to raise NT$4.41 billion, according to one of the sale's arrangers, Industrial Bank of Taiwan (
The building is owned by Tong Yang Chia Hsin International Corp (
"Institutional investors including fixed-income investors and investment banks triggered a buying rush, subscribing most of the shares with a minimum price of NT$1 million," the industrial bank's public relations manager yesterday quoted chairman Kenneth Lo (
The public relations manager said that NT$2.13 billion-worth of beneficiary shares with a fixed interest income of between 2.3 percent and 2.6 percent were sold to investors. Chia Hsin Cement holds the remaining NT$2.28 billion in secondary beneficiary bonds, he said.
Chia Hsin has a healthy financial portfolio and its office building is fully occupied. The prospect of long-term and stable rental incomes attracted many investors to yesterday's deal, Lo told a press conference yesterday morning.
Lauding the success of yesterday's bond sale, Deputy Finance Minister Susan Chang (
Following last July's passage of the Real Estate Securitization Statute (
The statute, which was enacted to boost the local capital market and the sagging property market, defines "real estate" as land, buildings, roads, bridges, tunnels, tracks, piers, parking lots and objects built above ground with economic value.
According to Lo, yesterday's bond sale was also the industrial bank's first deal, and will be followed by more deals including several issuances of securities backed by Far Glory International Center (遠雄國際中心) and Shinkong Life Insurance Co's (新光人壽) service apartment -- Jasper Villa (傑仕堡) in Taipei's Tienmu district.
Shares of contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) came under pressure yesterday after a report that Apple Inc is looking to shift some orders from the Taiwanese company to Intel Corp. TSMC shares fell NT$55, or 2.4 percent, to close at NT$2,235 on the local main board, Taiwan Stock Exchange data showed. Despite the losses, TSMC is expected to continue to benefit from sound fundamentals, as it maintains a lead over its peers in high-end process development, analysts said. “The selling was a knee-jerk reaction to an Intel-Apple report over the weekend,” Mega International Investment Services Corp (兆豐國際投顧) analyst Alex Huang
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is expected to remain Apple Inc’s primary chip manufacturing partner despite reports that Apple could shift some orders to Intel Corp, industry experts said yesterday. The comments came after The Wall Street Journal reported on Friday that Apple and Intel had reached a preliminary agreement following more than a year of negotiations for Intel to manufacture some chips for Apple devices. Taiwan Institute of Economic Research (台灣經濟研究院) economist Arisa Liu (劉佩真) said TSMC’s advanced packaging technologies, including integrated fan-out and chip-on-wafer-on-substrate, remain critical to the performance of Apple’s A-series and M-series chips. She said Intel and Samsung
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Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has approved a capital budget of US$31.28 billion for production expansion to meet long-term development needs during the artificial intelligence (AI) boom. The company’s board meeting yesterday approved the capital appropriation plan for purposes such as the installation of advanced technology capacity and fab construction, the world’s largest contract chipmaker said in a statement. At an earnings conference last month, TSMC forecast that its capital expenditure for this year would be at the higher end of the US$52 billion to US$56 billion range it forecast in January in response to robust demand for 5G, AI and
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