International banks step up in Taiwan market

Vastavam web: Taiwan’s ultra-competitive loan market, dominated by highly-liquid domestic lenders, is turning out to be an unlikely source of opportunities for international banks.Mizuho Bank is the coordinator on a NT$28.5bn (US$977m) acquisition loan for Pou Chen Corp (9904.TW), the world’s biggest footwear maker, in a rare instance of a Japanese bank leading a high-profile domestic currency loan in Taiwan.“We are seeing more competition from our overseas counterparts in cross-border acquisition deals as they have branches in Taiwan and they are more experienced in this field, and sentiment is quite positive,” said a senior loan manager at a top-tier Taiwanese state-owned bank.

On Pou Chen’s loan, two other Japanese mega banks – MUFG and Sumitomo Mitsui Banking Corp – are also joint mandated lead arrangers and bookrunners along with Mizuho and Taiwanese lenders Bank of Taiwan, Bank Sinopac, CTBC Bank and Taipei Fubon Commercial Bank.