Year One of New Regulations: Cathay Life Issues First $500 Million Offshore Subordinated Bonds
Cathay Life Insurance successfully issued $500 million in 15-year US dollar subordinated bonds via its Singapore subsidiary to meet capital requirements under IFRS 17 and TIS. The issuance was nearly 3 times oversubscribed.
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- 📰 Published: April 24, 2026 at 00:57
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(Central News Agency, reporter Su Siyun, Taipei, 23rd) Cathay Life Insurance announced today that it has issued US$500 million of 15-year (non-callable for the first 10 years) US dollar subordinated corporate bonds in the offshore bond market through its wholly-owned subsidiary Cathaylife Singapore Pte. Ltd. The issuance was nearly 3 times oversubscribed. This is the first offshore bond issuance by Cathay Life since the insurance industry transitioned to the new regulatory system this year.
In response to the capital requirements during the first year of the life insurance industry's transition to the new generation solvency system (TIS), Cathay Life continues to issue bonds in international capital markets to strengthen its capital structure and maintain adequate capital levels.
Cathay Life pointed out in a press release this evening that the funds raised will be mainly used to support the capital requirements following the adoption of the International Financial Reporting Standard 17 (IFRS 17) for insurance contracts and TIS. This aims to maintain a robust capital structure, further expand diverse overseas financing channels, and enhance liquidity in the secondary market.
According to Cathay Life, on the 23rd, through its wholly-owned subsidiary Cathaylife Singapore Pte. Ltd., it issued a total of US$500 million (approximately NT$15.7 billion) in 15-year (non-callable for the first 10 years) US dollar subordinated corporate bonds in the offshore bond market. The issuance received nearly 3 times oversubscription, demonstrating the market's high recognition of the company's steady operations and financial health.
This issuance is the company's third offshore US dollar bond since completing the domestic insurance industry's first offshore bond issuance in early July 2024, and it is also the first offshore bond issuance since the transition to the new system this year.
Considering the recent stable trend in the international bond market, Cathay Life seized an appropriate issuance window and successfully priced it on the 23rd at T10+128 basis points (using the 10-year US Treasury bond as the benchmark interest rate). The yield at issuance is 5.586%, the coupon rate is 5.5%, and the total issuance size is US$500 million. (Editor: Chen Yanjun) 1150423
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In response to the capital requirements during the first year of the life insurance industry's transition to the new generation solvency system (TIS), Cathay Life continues to issue bonds in international capital markets to strengthen its capital structure and maintain adequate capital levels.
Cathay Life pointed out in a press release this evening that the funds raised will be mainly used to support the capital requirements following the adoption of the International Financial Reporting Standard 17 (IFRS 17) for insurance contracts and TIS. This aims to maintain a robust capital structure, further expand diverse overseas financing channels, and enhance liquidity in the secondary market.
According to Cathay Life, on the 23rd, through its wholly-owned subsidiary Cathaylife Singapore Pte. Ltd., it issued a total of US$500 million (approximately NT$15.7 billion) in 15-year (non-callable for the first 10 years) US dollar subordinated corporate bonds in the offshore bond market. The issuance received nearly 3 times oversubscription, demonstrating the market's high recognition of the company's steady operations and financial health.
This issuance is the company's third offshore US dollar bond since completing the domestic insurance industry's first offshore bond issuance in early July 2024, and it is also the first offshore bond issuance since the transition to the new system this year.
Considering the recent stable trend in the international bond market, Cathay Life seized an appropriate issuance window and successfully priced it on the 23rd at T10+128 basis points (using the 10-year US Treasury bond as the benchmark interest rate). The yield at issuance is 5.586%, the coupon rate is 5.5%, and the total issuance size is US$500 million. (Editor: Chen Yanjun) 1150423
Standing with the truth, every sponsorship from you is a force to protect press freedom.
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The text, images, and audio/video on this website may not be reproduced, publicly broadcast, publicly transmitted, or utilized without authorization.