Taiwan Loan House: Taipei Fubon Commercial Bank
Taipei Fubon Commercial Bank fended off intense competition at home and overseas, winning key roles on a number of loans even as lending activity in Taiwan remained lacklustre.
The bank snared nine sole mandates on deals at home as well as overseas, including financings tied to environmental, social and governance metrics, that helped it stand out among rivals.
“Despite intense competition in the syndication markets, we managed to win mandates by providing tailor-made sustainable financing solutions and offering underwriting commitments to our clients in Taiwan or overseas,” said Sheila Chuang, managing director and head of the institutional banking division at Taipei Fubon Bank.
Taipei Fubon’s sole mandate on an US$800m debut sustainability-linked loan for Foxconn Interconnect Technology underscored its capabilities as the borrowing closed in March to a strong response, attracting 16 other lenders in syndication.
Foxconn faced challenges in refinancing a US$575m loan first put in place in February 2019 because of its tight pricing requirements.
Taipei Fubon, as ESG coordinator, drummed up strong demand, leading to the deal being increased from an original size of US$600m and bagging the distinction of being the largest foreign currency SLL in Taiwan in 2024.
In April, Taipei Fubon – as one of two leads – closed a NT$24bn-equivalent (US$755m) ESG loan for electronic products distributor World Peace Industrial. The borrowing was also increased with 10 banks joining.
In October, Taipei Fubon burnished its credentials with another sole bookrunner and ESG coordinator role on a US$150m-equivalent debut SLL for Asia Vital Components, Taiwan’s largest cooling products provider. The dual-currency and dual-borrower structure appealed to lenders, leading to 14 other banks joining the deal.
Taipei Fubon was also the sole original MLAB on a NT$4.35bn SLL closed in September for property developers Dao Ding Construction and Hong Xin Construction to back a redevelopment project in Taipei despite tightened regulatory scrutiny of the real estate sector. The bank was also the sole MLAB on a NT$2.04bn ESG loan for Champion Building Materials completed in May.
In the renewable energy sector, Taipei Fubon was one of the eight MLABs on a NT$61.1bn 20-year financing for the construction of Danish energy developer Orsted’s offshore wind farm project in Taiwan, which includes the divestment of 50% to Taiwanese insurer Cathay Life Insurance.
Taipei Fubon was the most active among Taiwanese lenders in overseas markets for Indian borrowers, completing four deals as a bookrunner in 2024, including sole mandates on Bank of Baroda Sydney branch’s debut A$200m (US$134m) syndicated loan in September and a US$100m three-year term loan for Canara Bank in August.
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