Commitment to the well-being of the region.
The Republic of China (Taiwan) joined CABEI in 1992 and is one of the Bank's first non-regional members; its incorporation enabled the Bank to issue and place its first bonds on the international market. At the close of 2021, it is the non-regional member with the highest shareholding (11.4%) with a subscribed capital of USD776.3 million and contributions amounting to USD133.6 million.
In the coordination of development projects, the Republic of China (Taiwan) cooperation for the region focuses on key areas for poverty reduction, such as food security, education, agriculture, Micro, small and medium-sized enterprises, agribusiness, coffee producing sector affected by rust, export promotion and forestry and industrial development.
As a relevant fact, in 2020, thanks to the alliance with its non-regional partner country, CABEI made it's 19th issue in the Taiwan capital market, historically totaling US$ 2.3 billion.
In 2021, CABEI opened its representative office in the Republic of China (Taiwan) located at the Taipei 101 building.
CABEI issued its 18th bond in Taiwan and its 7th placement in the Formosa Market, offering CNH2,000 million 5-year Note
CABEI priced the largest ever 5-year CNH in the History of the Formosa Market and second largest in CABEI’s history.
Tegucigalpa, April 27, 2018, the Central American Bank for Economic Integration (CABEI), priced a 4.85% CNH2,000 million (equivalent to US$ 315.8 MM) Formosa bond offering in Taiwan.
The notes were issued under CABEI’s Medium-Term Notes Program (MTN) in registered form and pursuant to Regulation S of the Securities Act and will be subject to dual listing, available in the Taipei Exchange and the Luxemburg Stock Exchange, in the latter with the purpose of allowing the participation of off-shore investors, mainly from Hong Kong and Singapore.
The transaction is CABEI’s seventh issuance in the Formosa Market and its eighteen bond placement in Taiwan since its debut in 1997, becoming the only Latin-American Supranational Institution with presence in the Formosa Market.
The Executive President, Dr. Nick Rischbieth, highlighted Taiwan’s Capital Market relevance, as the second more important funding source for CABEI and one of the most important sources of financing in the Bank's long-term vision. He also highlighted that “CABEI´s frequent issuer status and superior credit quality has allowed it to have a privileged position in the investor’s community of the Capital Market of Taiwan”.
The Bank Chief Financial Officer, Hernán Alvarado, also mentioned that “CABEI’s CNH2,000 million placement is the largest 5-year CNH Formosa ever, in a market where 5-year tenor is just available to a select number of issuers. The size also reflects the confidence of Taiwanese´s investors in the credit profile of CABEI, considering that benchmark sizes in this market range From CNH500 to CNH1,000 million”.
The transaction was announced at 9:00 a.m. Taipei time as a 5-year “benchmark size” CNH offering, with a price guidance of 4.85% area. The issuance benefited from a largely oversubscribed book of over CNH3,400 million (equivalent to US$536.83 MM) from 27 different accounts, and allowed the issuer to increase the size up to CNH 2,000 million.
Demand came from investors in Singapore, Hong Kong and Taiwan, the latest having the highest demand (86% of the total amount). The final book was mainly made up by insurance companies (57%), followed by bank treasuries (30%) and investment funds (13%).
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