By Natasha Brereton-Fukui
SINGAPORE--French bank Societe Generale has sold a 70 billion
yen ($849 million) three-tranche yen-denominated bond, according to
a term sheet seen by Dow Jones Newswires on Thursday, marking its
first-ever foray into the samurai market.
The bank priced a Y23.8 billion two-year bond at par to yield
0.90%, a Y39.7 billion three-year bond at par to yield 1.00% and a
Y6.5 billion five-year bond at par to yield 1.11%.
The yields equate to 60 basis points, 70 basis points and 75
basis points over the comparable offer-side yen swap rates.
The market for samurai bonds--yen-denominated debt sold by
non-Japanese companies and governments--has attracted greater
attention in recent months, as issuers have sought to broaden their
sources of funding and as European lenders have retrenched amid the
crisis.
Japanese investors have also increased their exposure overseas,
after last year's earthquake disaster highlighted the dangers of
holding too great a proportion of their portfolios domestically,
and as they have sought higher returns on their investments.
Mitsubishi UFJ Morgan Stanley Securities, Nomura Securities and
SMBC Nikko Securities were joint lead managers on the deal.
Write to Natasha Brereton-Fukui at
natasha.brereton-fukui@dowjones.com