The Saudi National Bank (SNB) is planning to issue five-year USD-denominated Formosa bonds, which will be listed on the Taipei and London stock exchanges, according to Al Arabiya. The bonds, which carry a final price guidance of 120 bps above SOFR, will be issued by SNB Funding and guaranteed by SNB, according to Zawya. The notes are rated A- by S&P and Fitch, with the settlement date set for 17 March.

SOUND SMART- Formosa bonds are foreign currency bonds issued by international entities and listed on the Taipei Exchange in Taiwan. The debt instruments have gained popularity due to Taiwan's low-interest-rate environment.

REMEMBER- SNB became the first Saudi bank to tap Taiwan’s Formosa market in July, issuing USD 500 mn in floating-rate notes under a USD 5 bn program, exceeding its USD 300 mn target. The bonds were priced at 120 basis points above the SOFR rate.

ADVISORS- Credit Agricole CIB Taipei branch, HSBC Bank (Taiwan), and KGI Securities are joint managers.

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