Japanese investment company intends to develop infrastructure projects
Category: Japan
Posted inDaily Brief
Japan interest building, says Vale CFO Siani
Both sides need to be proactive and make concessions in order to improve financial ties
Posted inWeb Articles
Japan interest building, says Vale CFO Siani
Both sides need to be proactive and make concessions in order to improve financial ties
Posted inDaily Brief
Chilean Raises $57m in JPY Placement
Banco de Chile has raised JPY5.8bn ($57m) through a private placement in the Japanese bond market, according to people familiar with the transaction. Issued on the back of reverse inquiry, the 2019 bond priced at par with a 1.03% coupon, to yield mid-swaps plus 65bp. Citi was sole lead. The Aa3/A+ Chilean raised a JPY11.1bn ($112m) euroyen last month in its first-ever deal in the Japanese bond market, which came at MS+50bp.
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Banco de Chile Makes Japan Debut
Banco de Chile has raised JPY11.1bn ($112m) through a private placement in the Japanese bond market, it says, its first such transaction. The 2016 bond priced at par with a 0.74% coupon, or mid-swaps plus 50bp. Citi was sole lead on the Aa3/A+ rated deal. “The key thing is that this transaction was well priced for the Japanese market and versus its dollar curve,” says a banker away from the deal. Pricing attractively versus the issuer’s peso curve was tricky, considering the issuer lacks a strong USD benchmark – having last issued in USD in 2006, according to Dealogic. So far Banco de Chile has issued $1.12bn in cross-border bonds in 2013, it says, highlighting it will continue to evaluate new markets. It most recently raised CHF175m ($191m) in Switzerland. Banco de Chile follows Banco del Estado de Chile into the Japanese market, with the latter becoming the country’s first yen-denominated issuer in June through a JPY24bn sale. LatAm issuers have raised $1.18bn-equivalent from three deals so far this year, according to Dealogic data. This compares to $1.33bn from two in the corresponding period in 2012, which is also 2012’s full-year total.
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BdB Targets Euroyen
Banco do Brasil has set its sights on a Japanese yen-denominated bond issue in the international market, according to people familiar with the issuer’s plans. Banco do Brasil, JPMorgan, Citi, Mizuho and Mitsubishi UFJ-Morgan Stanley are working on the transaction, known as a euroyen bond. The bank held non-deal fixed-income investor meetings in Asia in September with JPMorgan. CFO Ivan Monteiro told LatinFinance earlier this year the bank would focus on diversification of debt funding this year, with Japan and local LatAm currencies such as Chilean pesos among the options beyond euros and dollars. Banco do Brasil raised JPY24.7bn ($315m) though its first-ever euroyen transaction in September 2012. The 2015 priced at par to yield 1.80%, or yen swaps plus 146bp. Bank of America Merrill Lynch, Banco do Brasil, JPMorgan, Mizuho and SMBC Nikko managed that sale.
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Usiminas to Get Japanese Capital
Sunitomo has agreed to give Mineracao Usiminas a $100m capital injection, the mining arm of Brazilian steelmaker Usiminas says. In exchange, Usiminas is to give the Japanese conglomerate a piece of land, which will be placed in the pair’s Musa joint venture. “With the transfer, Musa will hold a strategic asset, next to other port terminals in Itaguai’s Sepetiba bay, to serve as backyard for iron ore handling and storage,” Usiminas says.
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Mexico Taps Samurai Investors for $820m
Mexico has raised JPY80.6bn ($822m) through a triple-tranche Samurai issue, marking its second non-JBIC guaranteed bond in the Japanese market. In the largest unguaranteed Samurai offering since 1997, the deal attracted more than 50 Japanese accounts from a diversified investor base and locked in better spreads than last year’s Samurai issue. It sold a 2016 JPY48.6bn tranche at par with a 1.16% coupon to yield Yen swaps plus 80bp, in line with guidance but on the wider end of 60bp-80bp initial price thoughts. A 2018 JPY15bn tranche was priced at par with a 1.39% coupon to yield Yen swaps plus 88bp, in line with guidance, and within 70bp-90bp initial thoughts. Sufficient reverse inquiry allowed the Baa1/A-rated deal to include a JPY17bn 2019 at par with a 1.54% coupon to yield Yen swaps plus 93bp, said to be the longest tenor sold in the Samurai market this year. The bond follows Japanese investor meetings earlier this month, with Daiwa, Mizuho and Nomura managing. Falling into Mexico’s medium- to long-term investment program, Japanese investors represent an increasingly important market for diversification, after the USD and EUR bond markets. Last year’s sale made Mexico the first triple-B rated borrower to issue a Samurai bond without JBIC support. It placed a dual-tranche JPY80bn 3- and 5-year bond. The sovereign priced a JPY50bn 2015 tranche at par with a 1.29% coupon, to yield Yen swaps plus 89bp, and a JPY30bn 2017 at par with a 1.56% coupon, to yield Yen swaps plus 110bp. Mexico follows a JPY24bn bond debut by Chile’s BancoEstado, which was priced in June.
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Petrobras Fills Up on Japanese Credit
Brazilian state-owned oil company Petrobras has signed a $1.5bn credit package with JBIC, it says. The two credit lines in the deal are insured by Nippon Export and Investment Insurance (NEXI) and will be 60% financed by JBIC and 40% by private Japanese financial institutions. Mizuho is the agent bank for the financing. Petrobras plans to use the credit lines to buy equipment and services, it says, in line with a 2012 partnership agreement between JBIC and Petrobras. Further terms of the transaction were not disclosed, and a spokesperson for Petrobras declined to comment.
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Chilean Sees Potential Return to Japan: CFO
After a successful JPY24bn ($253m) bond sale in which Banco de Estado de Chile was able to print inside its USD curve and upsize from a targeted JPY20bn size, the bank hopes for another Euroyen deal next year, CFO Carlos Martabit tells LatinFinance. “We are very pleased to be the first [Chilean] to issue in the Japanese market. We could issue next year if good conditions exist,†he says, noting the government-owned bank hopes the deal opens the gates for other Chileans to issue in Japan. Martabit says Banco Estado was very fortunate to fund itself some 30bp cheaper than what it could attain in dollars. The 2018 Euroyen priced at par with a 0.837% coupon, to yield mid-swaps plus 35bp, in line with 30bp-40bp guidance. Citi and Daiwa managed the sale, rated Aa3/AA minus/A+.