April 17, 2013 / 3:45 AM / in 5 years

Chang Hwa Bank to sell 1 bln - 1.5 bln yuan bond -sources

TAIPEI, April 17 (Reuters) - State-run Chang Hwa Bank will issue a 1 billion - 1.5 billion yuan bond, two sources with direct knowledge of the matter said on Wednesday, in the latest sign of growing demand for yuan-denominated products as Taiwan-China ties gather steam.

The indicative yield for the three-year bond is at 2.85 percent - 3.0 percent, said one source, who spoke on condition of anonymity as the matter is not public yet.

Chang Hwa Bank will sell the bond as soon as May, subject to regulatory approval, the sources said.

China and Taiwan signed an agreement in September for the establishment of a clearing system for yuan transactions on the island, setting the stage for local and foreign banks to launch yuan bonds in Taiwan.

Chinatrust Financial, Taiwan’s top credit card issuer, recently priced its three-year yuan bond at a yield of 2.9 percent..

Deutsche Bank also has plan to sell yuan bonds of up to 2 billion yuan in Taiwan. (Reporting by Emily Chan; Writing by Faith Hung; Editing by Richard Borsuk)

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