Japan

Japanese issuers are among the best-regarded in the world, offering global investors a safe haven at times of heightened volatility. That is now more important than ever. Their last financial year started amid widespread trade disputes between China and the US. It ended with the global spread of Covid-19, a pandemic that threatens to fundamentally alter the capital markets. GlobalCapital talked to a group of Japan’s top issuers to find out how they have navigated the volatility — and what they’re planning next.

The market for bonds that target environmental, social and governance (ESG) concerns previously put the focus on the environmental aspect, leading to a rush of green bond issuance but little attention on social problems. Not anymore. Social bonds have become a much more prominent tool for highly-rated issuers, helping fund solutions to problems ranging from educational shortfalls in developing countries to the spread of Covid-19 around the world. Japanese issuers have been at the forefront, developing a busy domestic market. GlobalCapital talks to a group of prominent issuers about the potential of social bonds.

Japan’s socially responsible investment (SRI) market has blossomed, helping the country to become a leading destination for the sector. Morgan Davis reports.

Japanese companies have reduced their offshore bond issuance over the last few years. But could a push for overseas business bolster supply? Morgan Davis reports.

Yankee bank and insurance names took centre stage in the dollar market as US banks prepared to give their first insight into the impact of the coronavirus with the arrival of bank earnings season.

Schroders has appointed new heads for Asia Pacific, tapping Chris Durack and Susan Soh to the top job.

MUFG Securities Asia has named Mark Henderson, a veteran banker who has been with the firm for nearly two decades, as its new chief executive.

The Bank of Japan (BoJ) has joined a growing number of central banks around the world rushing to solve a problem that is not monetary in nature. Their actions are understandable — but the BoJ offers a clear example of the limits of monetary policy to solve real-world problems.

Sumitomo Mitsui Banking Corp is planning to issue a Rmb1bn ($144m) three year Panda bond soon, a banker on the deal told GlobalCapital China.

Rating: A1/A+

The Japan Finance Organisation for Municipalities printed the first deal from its budding green bond programme on Tuesday, impressing onlookers with a large book and aggressive price move. The trade shared the market with a social housing bond from Cassa Depositi e Prestiti.

The Japan Finance Organisation for Municipalities has picked banks for its first ever green bond, opting to print in euros for only the second time in the borrower’s history.