China rate cut gets BoCom tight pricing for Formosa, but not as tight as it wanted

China’s recent surprise interest rate cuts and a conservative approach to deal size helped Bank of Communications Taipei Branch to price its Rmb2bn ($325m) Formosa bond tightly on Thursday. The deal, which was only the second four-tranche Formosa, was the first from a Chinese bank to feature a domestic Taiwan rating — although bankers said this had little practical effect on investors, who still looked at the parent’s credit.