Japan

Equity-linked issuance in Europe burst into life on Thursday with the sale of a €500m bond for Prysmian Cables & Systems and the first Japanese CB of any size since September. Then on Thursday evening Immofinanz launched another deal. The clutch of deals suggests the market is wide open for issuers.

BPCE has filed documentation allowing it to issue total-loss absorbing capacity (TLAC) eligible senior bonds in the Samurai market, and the first ever yen-denominated non-preferred issue could arrive as early as next week.

Sumitomo Mitsui Financial Group (SMFG) was looking to sell a five year bond from its holding company on Wednesday, remaining the only Japanese ‘mega bank’ to look to euros for its total loss-absorbing capacity (TLAC) requirements.

European banks may lose out on the chance to finance one of the largest acquisitions in eastern Europe, after Japanese brewer Asahi won the €7.3bn bid to buy SABMiller’s regional assets. The outcome could mean that only Asahi’s relationship banks get a piece of the action.

Lloyds has become the third UK bank to soak up strong demand for holding company level senior debt in the Samurai market this year, though the lack of clarity around risk-weightings continues to limit bank treasury involvement.

Derivatives exchanges are making a push on natural gas with three new initiatives unveiled, amid expectations that demand to trade such products across global markets is set to grow.

Nissan has done the UK a favour. By playing hardball about wanting assurances from the UK government about Brexit, it has opened the debate into one where real investments are discussed, and tough choices become apparent. The City should follow its lead.

Industrial and Commercial Bank of China’s Tokyo branch sold a Rmb500m ($73.8m) dim sum bond on Tuesday — the first offshore renminbi Pro-Bond to be sold in Japan. The transaction was a successful attempt at drawing attention from Japanese investors, with the issuer managing to save costs compared to its dollar funding, according to bankers.

Citic Group has become the first Chinese issuer to tap the Japanese yen market in 16 years, opening the door for borrowers from the mainland to access liquidity in the Samurai market.

In this round-up, The BRICS bank announces its lending target for the next year, two US banks compete for RMB clearing role in New York, and China Construction Bank Tokyo gets admitted to the onshore foreign exchange market. Plus, a recap of our coverage this week.

Japanese technology giant SoftBank and the Public Investment Fund of Saudi Arabia have agreed to set up a UK-based technology fund for up to $100bn and have employed former bankers from Deutsche Bank and Goldman Sachs to help with the project.

Eisuke Sakakibara, the former Japanese politician who earned the nickname Mr Yen for his aggressive control of the exchange rate, says he is worried that the appreciation of the yen is a sign that the impacts of the expansionary policies known as Abenomics are wearing off