By Cristal Cody
Tupelo, Miss., July 13 – Japan Bank for International Cooperation priced $5 billion of guaranteed senior bonds (A1/A+) in four tranches on Thursday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The bank priced $1 billion of three-year floating-rate notes at par to yield Libor plus 39 basis points.
The $1.5 billion tranche of 2.125% three-year fixed-rate notes priced at 99.948 to yield 2.143%, or Treasuries plus 57.6 bps. The notes were talked in the mid-swaps plus 43 bps area.
In the five-year tranche, the issuer sold $1.25 billion of the 2.375% notes at 99.542 to yield 2.473%, or a spread of Treasuries plus 57.1 bps. The five-year notes were talked to price in the mid-swaps plus 57 bps area.
The final $1.25 billion tranche of 2.875% 10-year notes was sold at 99.115 to yield 2.978%, or Treasuries plus 62.1 bps. The 10-year notes were guided to price in the mid-swaps plus 72 bps area.
BofA Merrill Lynch, Daiwa Capital Markets Europe Ltd., J.P. Morgan Securities plc and Nomura International plc were the bookrunners.
The bonds are non-callable except in certain changes relating to Japanese taxation, where Japan Bank may redeem all of the bonds at par.
The bonds are guaranteed by Japan.
Proceeds will be used for the Tokyo financial institution’s ordinary operations.
| Issuer: | Japan Bank for International Cooperation
|
| Guarantor: | Japan
|
| Amount: | $5 billion
|
| Description: | Guaranteed senior bonds
|
| Bookrunners: | BofA Merrill Lynch, Daiwa Capital Markets Europe Ltd., J.P. Morgan Securities plc and Nomura International plc
|
| Trade date: | July 13
|
| Settlement date: | July 21
|
| Ratings: | Moody’s: A1
|
| S&P: A+
|
| Distribution: | SEC registered
|
|
|
| Three-year floaters
|
| Amount: | $1 billion
|
| Maturity: | July 21, 2020
|
| Coupon: | Libor plus 39 bps
|
| Price: | Par
|
| Yield: | Libor plus 39 bps
|
| Call feature: | Non-callable
|
|
|
| Three-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | July 21, 2020
|
| Coupon: | 2.125%
|
| Price: | 99.948
|
| Yield: | 2.143%
|
| Spread: | Treasuries plus 57.6 bps
|
| Call feature: | Non-callable
|
| Price guidance: | Mid-swaps plus 43 bps area
|
|
|
| Five-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | July 21, 2022
|
| Coupon: | 2.375%
|
| Price: | 99.542
|
| Yield: | 2.473%
|
| Spread: | Treasuries plus 57.1 bps
|
| Call feature: | Non-callable
|
| Price guidance: | Mid-swaps plus 57 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | July 21, 2027
|
| Coupon: | 2.875%
|
| Price: | 99.115
|
| Yield: | 2.978%
|
| Spread: | Treasuries plus 62.1 bps
|
| Call feature: | Non-callable
|
| Price guidance: | Mid-swaps plus 72 bps area
|
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