Lombard loans in Taiwan.
Private credit against Taiwan-listed shares — pledged, not sold, with ownership retained.
A Lombard loan against Taiwan-listed shares is credit secured by a pledge of equity listed on the TWSE. The holder pledges the shares as collateral, draws cash against a fraction of their market value, keeps beneficial ownership and dividends subject to structuring, and recovers the position in full on repayment.
- Lombard loans are arranged against shares listed on the TWSE (TWSE).
- The pledge is not a sale: ownership, dividends, and the upside stay with the holder.
- Loan-to-value is calibrated to the specific position, funded in TWD or cross-currency.
- Structured under the FSC regime, with disclosure from 10%.
Eligible collateral and venues
Lombard Financing arranges facilities against equity listed on the principal Taiwan venue: Taiwan Stock Exchange (TWSE). Eligibility at the position level turns on the liquidity and free float of the specific line, its volatility, and the size of the holding relative to its typical traded volume — the same variables that drive the loan-to-value.
Regulator and disclosure
Shares listed in Taiwan are regulated by Financial Supervisory Commission (FSC). Substantial-shareholding disclosure is triggered from 10%, and a pledge over a large line is structured with that reporting regime in view so that the transaction remains discreet and compliant. Where a holding sits near a control or takeover threshold, the structure is arranged to avoid disturbing the position.
Funding, custody, and structuring
Facilities are typically arranged for a tenor of twelve to thirty-six months, funded in TWD or in another currency on a cross-currency basis. Throughout the facility the pledged shares are held by a qualified custodian under bankruptcy-remote arrangements, so the security is clean and the holder’s ownership is preserved. Non-recourse, limited-recourse, and full-recourse structures are available, and the choice interacts with the loan-to-value and the pricing.
| Listing venue(s) | Taiwan Stock Exchange (TWSE) |
|---|---|
| Regulator | Financial Supervisory Commission (FSC) |
| Currency | TWD (cross-currency available) |
| Disclosure threshold | From 10% substantial-holding disclosure |
| Principal indices | TAIEX, FTSE TWSE Taiwan 50 |
| Indicative tenor | 12–36 months, renewable by agreement |
| Recourse | Non-recourse / limited-recourse / full-recourse |
Considering a Lombard loan against a Taiwan-listed position?
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Disclosure and regulation
Taiwan sets its substantial-ownership trigger higher than most of the region: under Article 43-1 of the Securities and Exchange Act a holder reports at 10%, with further notice on material subsequent changes, supervised by the FSC. The higher entry point gives a sizeable stake more room before it reaches the public record, though a Lombard pledge still leaves the client as the reporting holder once that line is passed. Because foreign institutional flows form a large part of daily activity, we also confirm the foreign-investor registration and custody status of any non-resident position, so a financing step aligns cleanly with the applicable inbound-investment rules.
An illustrative example
For illustration only: a client holding TWD 500 million of a large TAIEX semiconductor name — the sector that dominates the index — might draw a Lombard loan at 50% loan-to-value, the mid-point of the indicative 20–65% range, releasing roughly TWD 250 million while keeping the shares and their dividends. The advance can be funded in Taiwan dollars or on a cross-currency basis in USD or CHF. The figures are hypothetical; a real facility would reflect the holding’s turnover and float, and single-name concentration in the semiconductor complex would be weighed with particular care.
Illustrative only — not an offer, a quotation, or a commitment to lend.