- January 29, 2022
- Posted by: OptimizeIAS Team
- Category: DPN Topics
Subject – Economy
Context – SBI’s Formosa Bond issuance reflects India’s acceptability among international investors: Dinesh Khara
- A Formosa bond is a bond issued in Taiwan but denominated in a currency other than the New Taiwan Dollar.
- They fall under the eurobond category of bonds because they are denominated by a currency other than that of the country in which they are issued.
- They are issued by the Taiwan branches of publicly traded overseas financial institutions and to be traded must have a credit rating of BBB or higher.
- Formosa bonds can be issued by subsidiaries of foreign companies which either already operate in Taiwan, or are set up for the purpose.
- Formosa bonds are listed and traded on the Taipei Exchange.
- Formosa bonds also listed on overseas exchanges may be traded over-the-counter between bond dealers.