Nomura Holdings Inc. raised 180 billion yen ($1.9 billion) in Japan’s largest domestic corporate bond sale in 11 months as yield spreads decline to the lowest since the March 2011 quake.
The offering by Japan’s biggest brokerage included 69 billion yen of five-year 0.853 percent notes priced to yield 72 basis points more than the similar-maturity government debt, according to data compiled by Bloomberg. Takeda Pharmaceutical Co., Asia’s largest drugmaker, offered 190 billion yen of bonds in March 2012, the data show.
Sales of corporate bonds in Japan declined 29 percent this year to 713 billion yen, the lowest for the period since 2006, according to data compiled by Bloomberg. Offerings slumped even as the average yield companies in the country pay to sell debt declined to 0.78 percent yesterday, matching the least since November 2010, Nomura Bond Performance Index data show.
Nomura also sold 66.5 billion yen of 0.605 percent bonds due in 2016 priced to yield 56 basis points more than government debt and 44.5 billion yen of 1.249 percent notes maturing in seven years at a 89 basis point spread, according to data compiled by Bloomberg.
The extra yield investors demand to own the nation’s corporate bonds over government debt declined seven basis points this year to 47 basis points yesterday, matching the least since October last year, Nomura Bond index shows.
The company last offered domestic yen bonds in December when it raised 63 billion yen of 0.8 percent three-year notes that targeted retail investors, the data show. Japan’s Rating & Investment Information Inc. ranks the brokerage A+, its fifth-highest investment grade.