JPMorgan (NYSE:JPM) Prices Japanese Samurai Bonds

On a sale of 76.9 billion yen, JPMorgan (NYSE:JPM) fixed a rate on the five-year bonds of 1.05 percent.

The other 43.2 billion yen of the overall 111.1 billion yen in Samurai bonds offered by JPMorgan will be five-year floating rate bonds with a coupon of 40 basis points.

A Samurai bond is debt denominated in yen which is sold in Japan by foreign borrowers.

An unidentified person close to the situation revealed the terms of the bonds.

JPMorgan (NYSE:JPM) Heading Back Into Samurai Bonds

For the first time in over two years, an American financial institution will be offering Samurai Bonds, with JPMorgan (NYSE:JPM) ready to offer five-year bonds this month.

Samurai bonds are bonds denominated in yen and sold to Japanese institutional investors in Japan.

Some expect JPMorgan's return to the Samurai bond market to generate more interest in the bond, as Japanese investors have been looking for investment alternatives, as government debt is extremely low-yielding for them.

There is a strong demand for the bonds, which will probably start to enjoy an even stronger rebound with the entry of JPMorgan into the market again.

Raising capital in yen is easier in Japan because of the liquidity which accompanies their low interest rates.