Yen

Santander Consumer Finance opened up a new Tokyo Pro-Bond programme worth €10bn on Tuesday, following a similar move from its UK sister borrower last year.

Santander Consumer Finance opened up a new Tokyo Pro-Bond programme worth €10bn on Tuesday, following a similar move from its UK sister borrower last year.

BPCE has registered to sell more Samurai subordinated bonds, looking to build on a successful debut in the format earlier this year, as European banks diversify their sources of new capital.

Deutsche Bank on Thursday priced its latest Samurai deal well wide of its last effort as investors continued to digest its restructuring, while wild swings in the basis swap between yen and dollars buffet other potential issuers in the format.

Maybank became the first Asia Pacific issuer to launch a Pro-Bond in May 2014. It was the bank’s first foray into the Japanese capital markets, and also represented a useful shot in the arm for the fledgling Pro-Bond initiative. Maybank has since graduated to a Samurai, allowing a useful comparison between the two markets.

Korean banks have pulled back from the Samurai market, as funding costs have moved against them, but some other names have stepped into the breach. Australian banks are a key fixture in the Samurai markets, while the arrival of Maybank this year gives a pointer to future issuance. Asia Pacific financial institutions issuers are also proving instrumental in the steady development of the Pro-Bond market. Volatility in China, however, is not helping anybody. In September, some of Asia Pacific’s leadering FIG borrowers spoke to GlobalCapital about prospects in the Japanese capital markets.

Japan’s corporate bond issuers are facing razor-thin pricing in their domestic market, able to get away with thinner spreads than they have pulled off for years. But the new spread environment has not made everyone happy — and bond volumes have tumbled as a result. Matthew Thomas reports.

An evolution is happening in emerging market issuers’ use of yen funding. For many years, many of them have only been able to issue Samurai bonds by using JBIC’s GATE (Guarantee and Acquisition toward Tokyo market Enhancement) programme, but steadily more of them are stepping up to standalone issuance. At the same time, benchmark borrowers are bringing along less established issuers from the same countries in their wake

Japan’s debt market is not often known for its structural diversity, but a smattering of bank capital deals over the past year-and-a-half have provided a rare treat for yield-starved investors. There is little reason, though, to think supply will approach the level local investors would like for a long time to come. Matthew Thomas reports.

European banks have been the mainstay of the Samurai market over the last 12 months, and the market has repaid them with loyalty. When European markets were shut during the Greek crisis, Japan stayed open for familiar names, rewarding those who have made the effort to build relationships and a track record. Here, eight issuers and two banks describe their experience.

Japan’s Pro-Bond market is at first glance just a more limited version of the Samurai bond market, where foreign issuers turn to the local investor base for funding. But regulators see Pro-Bonds as something bigger: a way to help Tokyo become a global financial hub. Matthew Thomas reports

The Samurai bond market has long been a key source of returns for investors in the local market, and those investors have plenty more to look forward to. But a challenging swap market could limit issuance. Matthew Thomas reports.