DAIWA HOUSE INDUSTRY CO.,LTD. finalized a 3-tranche subordinated bond offering totaling ¥230 billion. The tenor, coupon and maturity of each tranche were announced.
Amid a rush of bond issuance, including several large transactions, the total amount of DAIWA HOUSE INDUSTRY CO.,LTD.’s 3-tranche subordinated bond offering was announced as finalized at ¥230 billion. The breakdown is as follows: Subordinated 6 has a 35-year NC5 tenor, an issue amount of ¥84 billion, a maturity date of 29 October 2061, a coupon of 3.255%, a spread of 105bp over Japanese government bonds, and Nomura Securities, SMBC Nikko Securities, Mizuho, Mitsubishi UFJ and Daiwa Securities as lead managers. Subordinated 7 has a 37-year NC7 tenor, an issue amount of ¥77 billion, a maturity date of 29 October 2063, a coupon of 3.666%, a spread of 125bp over Japanese government bonds, and SMBC Nikko, Nomura, Mizuho, Mitsubishi and Daiwa as lead managers. Subordinated 8 has a 40-year NC10 tenor, an issue amount of ¥69 billion, a maturity date of 29 October 2066, a coupon of 4.174%, a spread of 135bp over Japanese government bonds, and Mizuho, Nomura, SMBC Nikko, Mitsubishi and Daiwa as lead managers.
The issuer completed the acquisition of Sumitomo Densetsu as a wholly owned subsidiary for approximately ¥290 billion in March, following a tender offer in December last year, and will use part of the proceeds to repay the bridge loan borrowed for the acquisition. The offering was conducted using the POT method. There was also information that there was no account X or proprietary book, and Daiwa House’s return to the market comes after its 35.5NC5.5 subordinated bond offering in April last year.
The article notes that spread widening also extended to subordinated bonds and that pricing settled at the upper end of the marketing range. Overall, the offering is characterized by its large funding scale and multi-tranche structure.