Taiwan's First Commercial Bank Co. Ltd. is set to issue NT$5 billion of noncumulative subordinated bonds.

The perpetual bonds will bear a coupon of 2.57% and will be issued May 28, according to a May 9 stock exchange filing.

Funds raised from the issuance will be used to stabilize the lender's BIS ratio, enhance its long-term capital and prepare for future business development.

First Commercial Bank is a unit of First Financial Holding Co. Ltd.

As of May 9, US$1 was equivalent to NT$29.94.