Convertible bond issuance in Taiwan surged to a first-quarter record, driven by technology companies raising funds in one of the world’s most prominent artificial intelligence (AI) hubs.
Local firms sold US$4.4 billion worth of bonds convertible to shares in domestic and overseas markets in the January-March period, the most ever to start a year, according to data compiled by Bloomberg.
The surge was led by server maker Wiwynn Corp’s (緯穎科技) US$2 billion sale last month, underscoring the rising appeal of such instruments in Taiwan.
Photo: CNA
Convertible bond issuance in Taiwan exceeded US$5 billion last year and in 2024. The latest offerings defied geopolitical turmoil that has unsettled global markets since the start of the Iran war at the end of February.
Technology firms have been at the forefront of Taiwan’s capital markets boom, with chipmakers and hardware providers aggressively fundraising to meet rising global demand for AI components. Convertible bonds and share sales involving Taiwanese firms raised US$9.4 billion combined last year, following a US$12.6 billion haul in 2024, according to data compiled by Bloomberg.
This momentum could slow if market conditions turn less supportive. A sustained pullback in equities or a spike in volatility might deter issuers and investors.
For now, rising local issuance is showing the willingness of companies to tap markets at current equity valuations, suggesting confidence in their near-term earnings outlook. It is also a reflection of strong investor demand for equity-linked exposure to the tech sector, with built-in protection against uncertainty.
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