Over the past year and a half, in direct contrast to the subdued
activity of Japanese corporates and institutions in the
international capital markets, the trend for non-Japanese borrowers
to issue new debt in yen has grown ever more pronounced.
Last year there was a clear move among stronger emerging market
sovereigns to enter the samurai market, attracting domestic
Japanese buyers with higher yields than those available on maturing
domestic investments. Corporate issuers from developed markets also
found themselves able to issue sizeable deals. For example,
Unilever raised ¥145 billion ($1.4 billion) through a one-year
medium term note arranged by IBJ last June.
This year, yen deals have been popular in the Eurobond and global
bond markets from high quality issuers. Deals such as Canada's
five-year ¥50 billion global bond with a 0.7% coupon, which was led
this March by Nomura, demonstrate the continuing popularity of the
yen markets for non-Japanese issuers...
