Third Handelsbanken Samurai rides out volatility

Sep 4th, 2015

Svenska Handelsbanken sold a ¥66.8bn (Skr4.67bn, Eu496m) three tranche Samurai last Friday (28 September) in its third visit to the Japanese market in three years and against a volatile market backdrop.

Svenska HandelsbankenOLYMPUS DIGITAL CAMERAThe senior unsecured issue was split into a main ¥59.2bn five year fixed rate tranche priced at 1bp over swaps – the tight end of guidance, plus a ¥4.6bn 10 year fixed rate tranche at 12bp over, and a ¥3bn five year floater priced at Libor plus 5bp.

The bookrunners were Bank of America Merrill Lynch, Mitsubishi UFJ Morgan Stanley, Nomura and SMBC Nikko and a banker at one of the leads said the Swedish bank enjoyed a first mover advantage by being the first European FIG issuer into the Samurai market after the summer holiday season, and could take comfort in the resilience of the Japanese market amid broader volatility.

“Despite extreme volatility in the global markets given concerns over the Chinese economy, Svenska Handelsbanken received solid investor demand for all three tranches, on the back of its strong credit profile,” said the lead banker.

Around 90 investor participated in the transaction, with the largest, fixed rate five year tranche attracting demand from a broad range of investors, he said, and the 10 year fixed and five year FRN tranches mainly supported by life insurance companies and banks, respectively, while the order book was split 77%/23% between central and regional investors.

Handelsbanken last issued in the Samurai market in August 2014 after having debuted in June 2013.

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