Sumitomo Mitsui Banking Corp. sold $3 billion of dollar-denominated bonds in a three-part offering as Japanese borrowers issue the most notes in the U.S. currency in any week since January 2011.
The lending unit of Sumitomo Mitsui Financial Group Inc. (8316) sold $1 billion of 1.35 percent, three-year notes that yielded 100 basis points more than similar-maturity Treasuries, $1.25 billion of 1.8 percent, five-year debt with a 120 basis-point spread and $750 million of 10-year bonds with a 3.2 percent coupon that yielded 170 more than benchmarks, according to data compiled by Bloomberg.
Takeda Pharmaceutical Co. (4502) and Mitsubishi Corp. (8058) raised $3.75 billion yesterday, making it the busiest week for Japanese corporate bonds in 18 months.
Companies in the world’s third-biggest economy are taking advantage of a drop in costs this year as perceptions of Japanese corporate creditworthiness reached a two-month high last week. Mizuho Financial Group Inc. (8411) is also meeting investors about a possible 10-year subordinated dollar bond, according to a different person.
“Banks are trying to expand their overseas operations to counter the weak borrowing demand that the poor economy has prompted in Japan,” said Tetsuya Yamamoto, a senior analyst at Moody’s Investors Service in Tokyo. “They need foreign currency to meet the funding needs of Japanese companies overseas and to fund their own overseas operations,” he said by phone yesterday.
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