Chinatrust Financial to raise NT$35 N. via debentures, bonds

Taipei, Aug. 11, 2003 (CENS)--Chinatrust Financial Holding Co. will raise up to NT$35 billion in funds by issuing debentures and corporate bonds by the end of this year, company officials said late last week.

Chinatrust Commercial Bank, the core banking unit of the holding company, will issue up to NT$18 billion worth of debentures. The issue will have a maturity of longer than two years.

Proceeds from the debentures will be used to improve the bank's financial structure, raise its capital adequacy ratio and lower its capital cost, the officials said.

Meanwhile, the holding company itself plans to issue NT$17 billion in unsecured corporate bonds.

Capital raised via the bond issue will be used to finance its investment and acquisition plans, the officials added.

The holding company recently concluded an agreement to acquire Grand Commercial Bank via a cash/stock swap deal. It also plans to set up a venture capital company, and a NT$20 billion asset management company with a foreign partner.