Japan

It might be easy to imagine that Japan’s top credits have an easy time accessing the international bond market. Compared to high yield or debut issuers, that may be so. But a strong rating and an important role in public policy bring with them certain responsibilities — not least of which is keeping funding costs down. The rise in dollar interest rates, and the volatility that is sure to result, thus represents a conundrum for these issuers. What is the right price for a dollar bond? What is the correct attitude to maturity adjustment? GlobalCapital asked these and other questions during a roundtable discussion that took place in Tokyo shortly before the end of the fiscal year on March 31, 2018.

Japanese investors’ desperation to boost their yields is helping them shed an ultra-conservative image that has long defined them. The move is overdue but as more international borrowers turn to the yen markets for funding, the increasing flexibility of the buy-side is helping to usher in new structures and international standards. Rashmi Kumar reports.

Japanese issuers are tapping the international bond market in droves, pushing volumes to a record in 2017. The market is set to get a further boost this year, as more corporations enter the fray. Rashmi Kumar reports.

Vietnam’s Nghi Son 2 Power, which counts Japanese trading and investment conglomerate Marubeni Corp as one of its investors, has raised a $1.869bn project loan from a group of mainly Japanese lenders.

Rating: A1/A+

Japanese telecoms group Softbank opened the week in the European high yield market with a multi-billion refinancing deal to redeem its old 2013 bonds — and delete a covenant that could get in the way of its flotation.

The International Development Association, part of the World Bank Group, is on screens with its debut bond issue. The trade is offering a handful of basis points over seasoned World Bank Group issuer the International Bank for Reconstruction and Development (known as World Bank), according to bankers away from the mandate.

Investors showed healthy interest in a dual-tranche offering from Mizuho Financial Group on Wednesday, with the bank making only its second ever entry into the public euro bond market.

Hungary has priced its first Japanese yen deal in over a decade, achieving its lowest ever funding cost, as its love affair with Asian currencies for diversification continues.

China Eastern Airlines Corp has raised ¥50bn ($468m) in Tokyo’s Pro-Bond market, breaking new ground in Japan with a standby letter of credit (SBLC) structure. Some bankers reckon the deal could be the first of many to come.

Nomura has appointed Yo Akatsuka as its new global investment banking head, amid an annual management re-shuffle, according to an announcement on Tuesday.

European implied equity volatility has fallen after Angela Merkel secured a fourth term as German chancellor and despite Italy's general election producing a hung parliament.