Second Dual-Listed Bond This Month! Morgan Stanley Lists Simultaneously in Dublin and Taipei – TPEx Eyes Re-open System Next

Taiwan's international bond market continues to gain momentum. Morgan Stanley Finance LLC officially issued a dual-listed international bond on the 22nd, simultaneously listed on the Taipei Exchange (TPEx) and Euronext Dublin. This follows Barclays Bank’s debut issuance under the new bond regime on July 6, making it the second issuance case within the same month—demonstrating strong international issuer interest in TPEx’s 'New Dual-Listed International Bond System' launched on March 31. To expand market scale, TPEx is actively lobbying regulators to introduce a 'Re-open (additional issuance)' system.

Morgan Stanley Finance LLC has long been an active participant in Taiwan’s capital markets, having issued 77 international bonds in Taiwan to date, with a cumulative amount of USD 4.878 billion. This latest bond issuance totals USD 80 million, with a 10-year tenor and a fixed interest rate of 5.40%, fully guaranteed by its parent company, Morgan Stanley. The deal was led by Yuanta Securities as the lead underwriter, co-underwritten by Sunshine Commercial Bank, and distributed in collaboration with offshore financial institutions to professional investors in Taiwan and their overseas clients.

TPEx notes that under the previous system, a major limitation for international bond listings in Taiwan was the requirement that bonds be 'fully' raised and sold domestically before applying for listing on foreign exchanges. Under the old regime, if an issuer needed USD 200 million but could only raise USD 100 million in Taiwan, the deal would often fail. However, under the 'new system' launched in April, issuers can now sell partially in Taiwan and partially overseas, enabling simultaneous dual-listing once the total amount is secured.

TPEx describes the new system as transforming the international bond listing pathway from a 'one-way street' into a 'two-way street.' Not only can bonds issued domestically be 'taken out' for overseas listing, but bonds issued overseas can now also be 'brought in' for listing in Taiwan—making it easier for top-tier international issuers to enter the local market.

As the new bond system gains traction, TPEx’s overall business performance remains strong. To date this year, 18 companies have submitted IPO applications, with more expected by month-end, indicating robust market activity. To further expand market scale, TPEx is actively advocating with regulators for the implementation of a 'Re-open (additional issuance)' system.

TPEx explains that if the Re-open system is implemented, issuers who fail to meet full domestic demand during initial issuance can first issue and dual-list overseas. Later, when domestic investor demand increases, issuers can 're-open' and issue additional bonds through a simplified process—without having to refile the entire application. This would significantly reduce administrative costs for issuers and allow Taiwan’s bond market to respond more promptly to institutional investors’ allocation needs.

TPEx emphasizes that dual-listed international bonds significantly enhance issuers’ market visibility and expand investor bases and liquidity through diversified trading channels. To encourage issuers and underwriters to adopt the new system, TPEx has introduced incentive measures, including listing fee waivers for issuers and bonus payments for underwriters. With global giants like Morgan Stanley listing consecutively, Taiwan’s international bond market is poised to further establish itself as a key hub integrating digital finance and traditional bond markets on the global financial map.