Deutsche Bank launches its first Asian-listed retail bond on Taiwan's inaugural International Board
Deutsche Bank today announced the launch of its first Asian-listed retail bond issue - 'Deutsche Bank Bond 2006-1' ("The Bond") in Taiwan. The 3-year USD note which carries a coupon of 4.85% payable annually, is issued by Deutsche Bank AG Frankfurt and is the first bond to be listed on Taiwan's International Bond Board. Issuance size is USD230miillion.
The Bond provides investors with a stable yield, tax benefits and provides asset diversification for the Taiwan market. Denominated at USD10,000 per unit, investors may subscribe for one or more of the units at face value.
The Bond features include:
- Being backed by Deutsche Bank's strong credit rating of AA- by S&P
- Tax benefits on interest income for Taiwan resident investors
- Trading in an open market, providing price transparency and liquidity
- Among equally rated issuers, the annually payable fixed coupon of 4.85% is higher than any other USD fixed deposit available in Taiwan
- Wide distribution / over 10 designated banks and brokerage branches
Tsai Ing-Wen, Vice Premier of Executive Yuan said, "This exercise initiates a new dimension in Taiwan's capital market. We are pleased to have Deutsche Bank's contribution and professional expertise in developing this international platform and we are hopeful that this marks the beginning of many more ventures to come."
Knut Pohlen, Global Head of Funding and Liquidity Management at Deutsche Bank said,
"Deutsche Bank is very honoured to be the first foreign issuer in the Taiwanese retail market. We are also excited about the diversification benefits that come from entering this new market."
Cynthia Chan, Managing Director of Deutsche Bank Global Markets in Taiwan said, "This opens a new page in Taiwan capital markets. We are delighted to work closely with the Financial Supervisory Commission, the Securities and Futures Bureau, the Central Bank and the other regulators to develop and build this new platform. Now there is a new fund-raising avenue for domestic and international issuers. We are confident that this platform will continue to develop well."
Tsai Yeou-Tsair, Chairman of Mega ICBC said, "We are pleased to be the first lead underwriter and clearing house for the Deutsche Bank Bond. The launch of the product matches other major markets where fixed income products are a good alternative investment in view of a flat Fed Fund rate. Together with our strong distribution channel and the tax exempt feature for Taiwan resident investors, we are confident that this product will be well-received in the market."
The Deutsche Bank bond will be distributed to retail investors through 10 agents. They are Mega Bank; First Securities; Yuanta Securities; Polaris Securities; President Securities; Grand Cathay Securities; Master Link Securities; Sinopac Securities; Taiwan Securities; and Deutsche Bank Taipei Branch.
The bond is available for subscription starting from 11 October 2006 and is scheduled for listing at Gre Tai Securities Exchange on 1 November 2006.
For further information, please contact Deutsche Bank Communications Dept:
+852 2203 7077
About Deutsche Bank:
Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With Euro 1,058 billion in assets and 65,435 employees in 73 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.
In Asia Pacific, Deutsche Bank has over 45 offices in 17 financial markets with more than 9,600 staff. Deutsche Bank has been named 'Bank of the Year' and 'Bond House of the Year' by prestigious financial magazine International Financing Review (IFR) Asia in its 2005 Awards.
Established in 1980, Deutsche Bank Taipei Branch is one of the largest European banks in Taiwan. With a staff of over 140 people, the group provides universal banking services to target clients - leading multinationals, large local corporations, financial institutions, as well as high net-worth individuals.