NEC announced that it will issue $500 million of five-year, US dollar-denominated unsecured straight bonds to repay borrowings incurred in connection with the acquisition of a US company. The issue will be approximately ¥80 billion in size and will be listed on the Singapore Exchange, with payment scheduled for 1 September.
NEC announced on the 26th that it will issue $500 million (approximately ¥80 billion) of US dollar-denominated unsecured straight bonds on the Singapore Exchange. The company said this will be its first overseas bond financing in 31 years and is intended to expand its funding sources overseas and broaden its investor base. The proceeds are expected to be used to repay borrowings incurred in connection with the acquisition of a US company.
The bonds will have a five-year maturity and an annual interest rate of 5.129%. They have received a rating of “single-A minus” from S&P Global Ratings Japan. The payment date is 1 September, and this will be NEC’s first overseas bond financing since its Swiss franc-denominated convertible bonds issued in 1995.
NEC acquired US software company CSG Systems International in May and had raised short-term borrowings from financial institutions in connection with the acquisition. In June, it issued yen-denominated unsecured corporate bonds and raised a total of ¥50 billion. The latest overseas bond issue is intended to advance repayment of those borrowings.