The yen-denominated corporate credit market has become one of the most dynamic sectors of the capital markets. In January this year, Ford raised ¥100 billion ($948 million), the largest ever Euroyen corporate issue. Other international corporate issuers of yen bonds this year have included Procter&Gamble, McDonald's and DaimlerChrysler. Westpac Banking Group issued in January the First global yen bond for a commercial bank when it raised ¥50 billion. "Up to last summer there were just a few sovereign and supranational names. Now half the transactions are being done by corporates - the credit spectrum has expanded significantly in the last six months", says Kenji Kimura, co-head of primary business at Nomura.
"It is now accepted that there is a market and an investing public for corporate names", says Philip Porter, senior managing director at Tokyo-Mitsubishi International (TMI).
The "sweet spot", say bankers is for single A-rated well-known corporate names, which give security and a good yield.
And, as the credit spectrum broadens, emerging sovereign borrowers from single A right down to single B-rated are also becoming extremely popular among yen investors. In February, Turkey, rated at BB+, became the First emerging market sovereign to enter the market in 2000 with a ¥35 billion samurai issue.