Fubon Life Returns to Offshore Bond Market, Issues $350 Million Subordinated Notes with Over 5.4x Oversubscription

Fubon Life has returned to the offshore bond market for fundraising, completing the pricing of a $350 million (approximately NT$11.32 billion) 15-year subordinated corporate bond with a non-call 10 structure on the 21st through its wholly-owned Singapore subsidiary, Fubon Life Singapore Pte. Ltd. The issue spread is T10Y+133 basis points (based on the 10-year U.S. Treasury yield), with an issue yield of 5.95% and a coupon rate of 5.87%. The bond has been rated BBB+/BBB+ by S&P and Fitch, respectively, and was ultimately oversubscribed by over 5.4 times.

Fubon Life noted that this issuance marks its second offshore bond offering following its inaugural offshore USD subordinated corporate bond in September 2025. Through this transaction, the company successfully completed its first 15-year non-call 10 structured issuance, further strengthening its capital base and enhancing capital adequacy.

This issuance also highlights the company's successful overseas fundraising following its domestic NT$20 billion subordinated corporate bond issuance in May 2026, demonstrating high recognition from domestic and international institutional bond investors ahead of the insurance industry's formal adoption of IFRS 17 and the TIS new regime in 2026. It also expands the scale of diversified market fundraising.

Despite significant volatility in U.S. Treasury yields since the outbreak of the U.S.-Iran conflict—driven by oil price fluctuations and inflation concerns—the issuance attracted strong interest from institutional investors immediately after market announcement. Final investor order volume exceeded $1.9 billion, representing over 5.4 times oversubscription. Geographically, 89% of investors were from the Asia-Pacific region, with the remaining 11% from other regions. By investor type, funds and asset management firms accounted for 74%, insurance companies and pension funds 9%, and banks, private banks, and others 17%.

Citigroup, Crédit Agricole CIB, J.P. Morgan, and Morgan Stanley served as joint lead managers for this issuance.