Japan

Public sector borrowers are mainly keeping to the short end of the dollar curve this week, but at least one top tier issuer is understood to be considering a 10 year dollar benchmark in the next few weeks.

Barclays is rebuilding its franchise in Asia Pacific with three senior hires focusing on the China and Japan markets, according to a memo seen by GlobalCapital Asia.

The Japan Bank for International Co-operation (JBIC) found traction with a stellar four tranche offering on Thursday, gratifying investors feeling the pinch from a year that has been somewhat light on dollar supply.

The Japan Bank for International Cooperation (JBIC) hit the whole dollar curve on Thursday, launching a quadruple tranche dollar benchmark and managing to pull in spreads by 4bp-6bp on all four tranches.

China’s State Administration of Foreign Exchange (Safe) says the country will not devalue the renminbi, Hong Kong’s renminbi deposits fall in May, and China welcomes Japan to participate in One Belt One Road (OBOR).

Nomura confirmed that it has begun applying for a licence in Germany to operate a new Frankfurt-based entity, as a preparation for the UK’s exit from the European Union.

BPCE was this week looking to become the first bank to issue a Samurai social impact bond, in an innovatively structured transaction that will go towards financing clients rather than projects. Bankers involved in the deal say it could be the first step towards broadening the role of retail banks in the social bond market.

Swedbank listed a new programme on the Tokyo Pro-Bond market on Wednesday, as the Swedish bank looks to dip its toes into ever more attractive yen funding.

Crédit Agricole sold the largest ever Samurai bond from a European bank on Friday, raising a sizeable ¥203.9bn ($1.8bn) of debt across five tranches.

There was just a smattering of public sector dollar deals this week — but a wide difference in how they fared.

KommuneKredit fell short of full subscription with a three year dollar benchmark on Thursday, with few updates provided through the book building process.

The Republic of Indonesia priced a ¥100bn ($900m) bond on Wednesday, its first public Samurai deal in decades and its maiden fundraise following an upgrade to its credit rating. Although the issuer was forced to drop a 10 year tranche, its transaction was a blow-out, reflecting Japanese investors’ strong interest in foreign paper. Addison Gong reports.