Japan

Crédit Agricole issued a callable Samurai bond this week that will reset to a spread over the local government bond curve, as the yen market transitions away from Libor ahead of its cessation later this year.

BNP Paribas sold its first Samurai bond not to reset to Japanese Libor on Friday, ahead of the risk free rate's cessation later this year.

Japanese issuers have embraced green, social and sustainability bonds, offering domestic and international investors a range of deals designed to tackle climate change, gender equality and other problems. But the local investor base is still small — and some issuers have lingering questions about funding costs. GlobalCapital talked to a group of leading market participants about the potential for Japan’s ESG bond market.

Japan’s sustainable bond market, already one of the world’s largest, has grown over the past year — given a boost from social funding needs brought about by Covid-19. Morgan Davis reports.

The Japanese bond market had a blow-out year in 2020, despite the ongoing pandemic and related volatility. With 2021 already characterised by eager borrowers and large acquisition financing activity, DCM bankers are preparing for another record setting year. Morgan Davis reports.

Japanese issuers have just been through one of the most volatile, unpredictable years in decades. Although the impact of Covid-19 on capital markets was not as violent as the aftermath of the global financial crisis, huge questions about economic growth, trade and asset allocation meant it was arguably a more troubling period for issuers and investors alike. GlobalCapital talked to some of the country’s best-regarded issuers about how they navigated the market.

Three banks jumped into the euro senior market after the Easter break on Tuesday, benefitting from stable demand and printing with low new issue concessions.

The Republic of the Philippines sold its first zero-coupon bond in the Japanese market this week.

While European banks have been ducking the covered bond market in favour of central bank liquidity, issuance from the asset class’s newer markets has also been light, but for different reasons. Attention is now on South Korea and Japan, which are seen as the most promising sources of new issuance, according to a senior S&P ratings official.

Two companies have brought out green and sustainable bond frameworks this week that take the product in new directions — EU Taxonomy compliance and introducing a completely new word to the sustainable finance lexicon: “woven”.

Trading levels given are bid-side spreads versus mid-swaps and/or an underlying benchmark and bid-yields from the close of business on Monday, March 1. The source for secondary trading levels is ICE Data Services.

Development Bank of Japan became the second SSA borrower of the week to sell a dollar benchmark in the supplied three year tenor, tightening pricing by 5bp on the sustainability bond.