Korea Investment & Securities said on the 13th that it has completed the issuance of unsecured yen-denominated bonds, known as samurai bonds, totaling 36 billion yen (about 335.3 billion won). The issuance marks the securities firm's third yen-denominated bond offering, and analysts say it proved the company's global funding capabilities by absorbing a five-year long-term tranche.
The demand forecast for this public yen bond offering took place on the 3rd. The firm attracted a total of 53.1 billion yen in effective demand from local institutional investors. By maturity, the amounts raised were 17 billion yen for the two-year bond, 9.3 billion yen for the three-year bond, and 9.7 billion yen for the five-year bond. The spread was set at +130 basis points (1bp=0.01 percentage point) for the two-year bond and +170bp for the three-year bond, based on the TONA (Tokyo Overnight Average Rate) mid swap rate. These terms were 15bp and 40bp lower, respectively, compared with the first issuance in 2023. The spread for the five-year long-term bond, attempted for the first time, was set at around +185bp. SMBC Nikko Securities served as the lead underwriter for the issuance.
Korea Investment & Securities issued yen-denominated bonds for the first time in Korea's securities industry in 2023. In 2024, it also succeeded in raising an additional 10 billion yen. In the third issuance, the firm succeeded in finalizing its funding rate at the mid-to-lower level of the initially proposed target rate band. "The third issuance is significant in that it reaffirms our standing within Japan's public bond market while also broadening our investor base to long-term bonds," a Korea Investment & Securities official said. "Based on the funds raised, we will accelerate our global business diversification and continue to build a diversified funding network going forward."
