Temasek sees bright future in Taiwan
(15 March 2006 – Taiwan) Singapore’s Temasek Holdings is set to take a 15 percent stake in a Taiwanese financial company despite current uncertainty in Taiwan’s banking industry.
Temasek said it viewed this uncertainty as a good opportunity to invest US$400 million in E.SUN Financial through a bond deal.
The Singaporean investor said this was "not only the darkest moment but the also the most bright moment".
The market has been rattled by the Taiwanese government’s plan to put a cap on interest rates charged by banks on unsecured personal loans, sparking fears that banks’ bottom lines will be eroded.
As a result, investors have been dumping stock, causing Taiwan’s financial index to hit a four month low this week.
The stake in E.SUN is Temasek’s first foray into Taiwan’s financial services market.
The Singaporean investor said this was "not only the darkest moment but the also the most bright moment".
The market has been rattled by the Taiwanese government’s plan to put a cap on interest rates charged by banks on unsecured personal loans, sparking fears that banks’ bottom lines will be eroded.
As a result, investors have been dumping stock, causing Taiwan’s financial index to hit a four month low this week.
The stake in E.SUN is Temasek’s first foray into Taiwan’s financial services market.
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