June 10 (Bloomberg) -- Barclays Plc, the U.K.’s second-biggest bank by assets, is planning to sell the first Samurai bond by a British issuer in three years.
Barclays Bank Plc, the London-based company’s banking unit, said in a regulatory filing today it intends to sell both fixed-rate and floating-rate bonds this month. It would be the first sale by a U.K. company since a Lloyds Banking Group Plc issuance in 2011, according to data compiled by Bloomberg. Morgan Stanley and Societe Generale SA have offered Samurais in the last month as the yield premium on the notes fell to the lowest since 2007 yesterday, at 33 basis points over swaps.
Overseas borrowers have sold the most Samurai bonds in six years so far in 2014, with the 1.27 trillion yen ($12.4 billion) of offerings almost triple the level a year earlier. Morgan Stanley and Renault SA each issued 150 billion yen of notes last month, in the biggest deals since October 2012.
Barclays is considering selling three-, five-, seven- and 10-year bonds, according to two people familiar with the sale, who asked not to be identified because the terms aren’t set. The bank has been assessing interest of investors for the sale, which may occur as early as this week, one person said. A basis point is 0.01 percentage point.
Mitsubishi UFJ Morgan Stanley Securities Co., which co-managed the issues by Morgan Stanley and Renault, is the No. 1 underwriter of Samurai bonds so far this year with a 27.5 percent share, while Daiwa Securities Group Inc. is No. 2 with 20.1 percent, according to Bloomberg-compiled data.
Mitsubishi UFJ, Mizuho Securities Co., SMBC Nikko Securities Inc. and Barclays’s securities unit are managing the sale, according to today’s statement by the company.
Barclays said last month it will eliminate 7,000 jobs at its investment banking unit by 2016, bringing the total number of jobs to be cut across the group to 19,000 by then. The company raised to 14,000 the planned headcount reduction for this year, the company said in a regulatory statement on May 8.
Chief Executive Officer Antony Jenkins told reporters the same day that the investment bank will primarily target the U.K. and U.S., while its Asian unit will be “more focused.” The group is too exposed to volatility in the investment bank, Jenkins, told analysts on a conference call.
David Naville, the Singapore-based head of foreign-exchange structuring in the Asia-Pacific region, and Amit Agarwal, the Hong Kong-based head of rates structuring in the region, departed earlier this month amid the global cuts, according to two people with knowledge of the matter who asked not to be identified because they weren’t authorized to speak publicly.
To contact the reporter on this story: Finbarr Flynn in Tokyo at email@example.com
To contact the editors responsible for this story: Katrina Nicholas at firstname.lastname@example.org Ken McCallum