Euroclear and Taiwan’s TDCC Launch Offshore RMB Service

Euroclear Bank and the Taiwan Depository & Clearing Corporation (TDCC) have launched a service allowing international investors to settle Taiwanese-issued renminbi (RMB) bonds, aka Formosa bonds, in TDCC.

The service, the first of its kind, will allow settlement transactions to be routed from Euroclear Bank’s account with Citi to the local central securities depository, TDCC.

TDCC said: “Taiwan has the fastest developing RMB market in the Asian region with total market issuance reaching RMB12.1bn (US$2bn) in February 2014. We have been looking for a global partner with the agilityexperience and infrastructure to match our growing needs and are delighted to be working with Euroclear Bank and Citi on this project.

“Making our Formosa bonds accessible to the greatest number of international investors, through Euroclear Bank, will enable us to achieve our strategic objective to expand and further internationalise Taiwan’s capital markets.”

“With the ever-growing importance of RMB as an internationally used currency, the offshore RMB market in Taiwan will only continue to expand”, said Olivier Grimonpont, general manager, regional head Asia-Pacific for Euroclear Bank.

David Russell, Citi region head for securities services in Asia Pacific, added: “Our established network in Asia, and in particular Taiwan, has enabled this important co-operation with Euroclear Bank and TDCC to come to fruition. Through our account at TDCC, Euroclear Bank clients will be able to access all current and future Taiwanese RMB denominated bonds.”

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