Guarantor: Nomura Holdings Inc, Nomura Securities Co Ltd
Maturity: 25 October 2011
Issue/re-offer price: 99.885
Coupon: three month Euribor plus 17.5bp
Spread at re-offer: three month Euribor plus 20bp
Launch date: Tuesday 17 October
Payment date: 25 October
Lead mgr: Nomura International
This transaction forms part of Nomura's strategy to be a regular and responsible issuer in the international capital markets to complement its traditional funding sources in Japan. This week's operation follows on from its three highly successful transactions since re-entering the public debt markets last November. The deal was heavily oversubscribed and that allowed us to increase the trade from Eu500m to Eu700m.
The transaction was launched on Monday morning with the book reaching Eu1bn in roughly two hours. Given Nomura's need for funds being capped at Eu700m, books were closed by midday when they totalled Eu1.4bn with 73 different investors having placed orders.
Such momentum allowed Nomura to price the deal at 20bp over Euribor, the tight end of the initial price guidance of 20bp-21bp over.
The deal extends Nomura's euro curve following on from its three and five year dollar issues and the three year euro transaction launched in February. The issuer was able to take advantage of strong market conditions exploiting the market's recent appetite for floating rate euro product.
In terms of distribution, the bulk of the deal was sold to the UK/Ireland, Germany/Austria, France and Asia. Banks were the main buyers taking 64% of the paper, fund managers took 30% and central banks/government agencies bought 6%.