Government to sell Chunghwa bonds not shares

16 Jun 2008

Taiwan’s government announced yesterday that it has scrapped plans to sell a stake of more than 5% in Chunghwa Telecom worth around TWD52 billion (USD1.7 billion) in favour of issuing bonds instead. The state had proposed to reduce its stake in the incumbent telco from 35.65% to as low as 30% to help fund a TWD120 billion programme to bolster the economy, but after some members of parliament opposed the scheme, ministers agreed to raise TWD52.8 billion via a bond sale. The news sent Taiwan’s ten-year bond yield to a four-year high of 2.831%.

Taiwan, Chunghwa Telecom