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TAIPEI, March 20 Cathay Financial Holding Co Ltd
, Taiwan's biggest privately run financial holding firm
by assets, said on Monday it plans to raise up to T$35 billion
($1.15 billion) in the first half of 2017 amid concerns of rate
hikes and volatility in global markets this year.
The plan to raise capital by issuing subordinated debts
comes as Cathay anticipates global market volatility and
interest rate hikes by the U.S. Federal Reserve later this year.
"We hope to strengthen our capital ahead of the rate hikes,"
Cathay Financial President C.K. Lee told reporters on the
sidelines of an investors' conference.
"There will be several elections in European countries this
year. We expect financial markets to be volatile," Lee added.
The company's life insurance arm, Cathay Life Insurance, is
the biggest insurer in Taiwan with about T$5 trillion invested
in local and overseas markets.
Earlier this month, the company said it is in exclusive
talks to acquire the Malaysian unit of Canada's Bank of Nova
Scotia in a deal that could be valued at about $200
million to $300 million.
Cathay is also a stake investor in Indonesia's Bank Mayapada
International and the Philippines' Rizal Commercial
Banking Corp (RCBC), holding stakes of 40 percent and
22.7 percent, respectively.
(Reporting by Faith Hung; Editing by Muralikumar Anantharaman
and Sherry Jacob-Phillips)