Publish Samurai Bonds, Government Raises 81 Billion Japanese Yen

Japanese Yen. (Photo: Doc. Antara/Reuters)

JAKARTA - The government through the Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance has succeeded in issuing government bonds (SUN) denominated in Japanese yen. Its value is 81 billion Japanese yen.

Quoting the DJPPR statement, Thursday, June 2, this SUN is denominated in Japanese yen is the first time in 2022. In fact, the issuance of this SUN is considered a success because in the midst of a volatile financial market due to the impact of rising interest rates and tightening global monetary policy as well as rising geopolitical tensions.

"This publication also managed to score a benchmark size of 81 billion Japanese yen for the eighth time since 2015," wrote the DJPPR.

In detail, the SUN in Japanese yen consists of series RIJPY0625 worth 68.2 billion Japanese yen, RIJPY0627 worth 5.1 billion Japanese yen, RIJPT0629 worth 1.7 billion Japanese yen, and RIJPY0632 worth 6 billion Japanese yen.

Each series will mature on June 9, 2025, June 9, 2027, June 8, 2029, and June 9, 2032.

The government started official marketing for the issuance of Samurai Bonds on Tuesday, May 31. During the two-day supply period, the incoming demand grew quite solidly and came from a diverse investor base, especially in the series with short tenors, reflecting the interest of Japanese investors in short tenors amidst volatile market conditions.

Prior to this transaction, the Government held a non-deal roadshow in the format of an online group meeting and one-on-one meeting which was attended by investors in Japan virtually.

The success of the roadshow has an impact on the diversity of types of investors who participate in the issuance of Samurai Bonds.

Based on the type, investors in this transaction consist of asset managers (24.8 percent), city banks (12.3 percent), central cooperatives (12.3 percent), lifers (8.6 percent), central public funds (2 .5 percent), property insurance (0.2 percent), regional banks/regional cooperatives (13.2 percent), others (9.1 percent) and investors from outside Japan accounted for 16.8 percent of the total number of investors.

The issuance of Samurai Bonds this time is aimed at financing the 2022 State Budget deficit, including for handling Covid-19 and efforts to restore the national economy. Joint Lead Arrangers in this transaction are Daiwa Securities Co., Ltd., Mizuho Securities Co., Ltd., Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., and Nomura Securities Co., Ltd.