An October 7 daily brief entitled “Mexico Reported on Yen Road” incorrectly identifies one of the managers on an upcoming Mexican bond transaction. Mitsubishi UFJ Morgan Stanley is one of three managers.
Category: Japan
Posted inDaily Brief
Mexico Reported on Yen Road
Mexico has started marketing its Samurai bond, eyeing a placement towards the end of the month, according to wire reports. Pricing is said to be in the range of the yen swap plus 50bp-60bp. Fresh off a $1bn 100-year transaction, the sovereign plans a 10-year bond of around JPY150bn yen ($1.8bn), guaranteed by the Japan Bank for International Cooperation, Mexican officials have said. Nomura, Mitsubishi UFJ, Morgan Stanley and Mizuho are managing the sale. Officials at the banks and the issuer decline to comment on the plans or could not be reached for comment. Mexico’s December 2009 Yen bond sale raised JPY150bn in 2019s to yield 2.22%, or yen swaps plus 80bp.
Posted inDaily Brief
Panama Aims for Sub 2% Samurai
Panama is hoping low global rates – especially in Japan – mean a Samurai issuance next year price through recent sovereign deals done with a JBIC guarantee. “The economic future of Panama is very much tied to Asia, and we want Asian investors to know Panama and be comfortable taking Panamanian risk,” Diego Ferrer, head of institutional relations at Panama’s public credit office, tells LatinFinance. The JBIC-wrapped deal should be $500m equivalent at 10 years and be completed by the end of January, he explains, to meet a debt maturity in February. The sovereign, with 3 out of 3 investment-grade ratings as of June, is aiming for a coupon under 2%, Ferrer says, which would be lower than Mexico, Colombia and the other issuers tapping that market in the past year under the JBIC program, which offers a 95% guarantee. After swapping to dollars, it would come in line with Panama’s curve, he says. The issuer is in the process of selecting banks for the transaction and should be helped by low interest rates, an increase in Japanese appetite for EM credit and Panama’s scarcity value, Ferrer says. Mexico was the last sovereign to hit the Samurai market, raising JPY150bn ($1.7bn) in 2019s at 2.22% coupon in December 2009. It has plans to tap again before the end of the year.