Taiwan is attractive from an issuer perspective because liquidity in its banks allows borrowers to sell debt at lower costs than in conventional markets.
Saudi Arabia’s representatives were in Taiwan last week to meet bond investors in non-deal roadshow, reported Reuters.
The sale of debt securities in Taiwan by foreign issuers and denominated in currencies other than the Taiwanese dollar will allow Saudi Arabia to tap a new investor base at a time of adverse conditions in emerging markets.
A non-deal roadshow is a series of investor meetings not tied to a specific deal.
In 2016, the Saudi Arabia government borrowed $50 billion through dollar bond sales since its debut in international debt markets offset lower revenues caused by a slump in oil prices.
Saudi Arabia raised $11 billion in its latest US dollar-denominated bonds issued in April.