Formosa Bond

A Formosa bond is a bond which is issued in Taiwan, but is denominated by a currency other than the 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.

Formosa bonds can be issued by subsidiaries of foreign companies which either already operate in Taiwan, or are set up for the purpose. In order to qualify as Formosa bond issuers, borrowers must have credit ratings of BBB or higher. Formosa bonds are listed and traded on the Taipei Exchange.

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