Societe Generale (EU:GLE)
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5 Years : From May 2011 to May 2016
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 email@example.com