Seoul, South Korea - NAVER issued Samurai Bonds totaling JPY 20 billion ($133 million) in the Japanese financial market.
Why it matters:
NAVER, a South Korean technology company, issued Samurai Bonds in the Japanese financial market, a move notable for being the first of its kind by a South Korean private company without a guarantee in over seven years.
The issuance may provide a blueprint for other global IT companies considering similar financing methods.
The Key Points
- NAVER secured Samurai Bonds in the Japanese financial market, divided into four maturity tranches of 3.5 years of JPY 14 billion, five years of JPY 1.5 billion, seven years of JPY 1.5 billion, and 12 years of JPY 3 billion.
- Demand exceeded supply, and yield spreads over the Yen TONA benchmark were set at 70 bps for 3.5 years and 120 bps for 12 years.
- The bonds are expected to be rated A3 by Moody's and A- by S&P.
What they said:
Namsun Kim, CFO of NAVER, said,
"The debut issuance of the Samurai Bond confirms the Japanese bond market's confidence in NAVER. It diversifies our creditor base and expands our access to global capital markets, strengthening our ability to secure stable liquidity for long-term growth."
What Comes Next?
With the new bond issue, NAVER not only broadens its capital sources but also reaffirms its long-term commitment to the Japanese market.
This financial move may serve as a model for other global IT companies looking to the Samurai bond market for similar financing options.
The company entered the US dollar bond market in March 2021 with an $800 million issue.