ING Bank NV, a unit of the largest Dutch financial services company, plans to sell more yen debt on the Tokyo Pro-Bond Market where it is the sole issuer, as it avoids the older and bigger Samurai bond market.
“We want to try all the maturities,” including five-year and 10-year tenors, Martin Nijboer, head of long term funding at ING Bank, said in a telephone interview Dec. 14. “This is a new market, so it takes some time to get to the end of the curve.”
The Dutch lender is the only borrower to have sold securities listed on the Tokyo Pro-Bond Market, which started in May last year, according to the website of the Tokyo Stock Exchange Group Inc., which operates the market. Tokyo Pro-Bond permits issues in any currency, allows documentation in English and has attracted registrations from units of Nomura Holdings Inc. and South Korea’s SK Telecom Co., according to the website.
ING Bank raised 50.7 billion yen through two-year debt in its inaugural offering in April, for which it filed an English-language document. While Samurai bonds, which are also issued in yen by overseas borrowers, give issuers access to a bigger market, they require filing financial statements in Japanese with the nation’s Finance Ministry.
“The documentation process is easier compared with the Samurai market,” said Dennis Haring, senior associate for long term funding at the Dutch bank. “It’s a good way of further diversifying our investor base.’
ING Bank offered 175.9 billion yen of three-year notes on Dec. 13, according to data compiled by Bloomberg. The sale is the biggest yen bond by an overseas borrower this year, according to the TSE website. Issuance of Samurai bonds declined 6.7 percent to 1.995 trillion yen this year, the least since 2009, according to data compiled by Bloomberg.
Other issuers considering sales on Tokyo Pro-Bond can model their filings on ING’s, according to Haring. ‘‘There might have been some parties like us that didn’t want to or weren’t equipped to meet Samurai’s disclosure requirements,” Haring said.