Key facts
- Lloyds Banking Group Plc sold ¥75 billion ($468 million) in yen-denominated bonds.
- This is Lloyds' first Samurai bond offering in two years.
- The Samurai bond market is experiencing its highest issuance levels since fiscal year 2015.
- Demand from yield-seeking investors is driving the market's growth.
- Credit Agricole SA recently issued ¥106.5 billion ($670 million) in Samurai bonds.
Lloyds Banking Group Plc has entered Japan's burgeoning Samurai bond market with a ¥75 billion ($468 million) sale, its first such offering in two years. This move underscores the growing appeal of the Japanese domestic bond market for international borrowers seeking yield.
The Samurai market has seen significant activity, with issuance reaching its highest point since fiscal year 2015. This surge is attributed to strong demand from investors actively searching for higher yields in a low-interest-rate environment.
Earlier in May, Credit Agricole SA also tapped the Samurai market, pricing ¥106.5 billion ($670 million) in bonds. The French bank offered wider spreads than comparable domestic corporate debt, with its five-year notes set at 58 basis points over the TONA mid-swap rate.