Mega Bond Sale Shows Japan Is Ready for Bigger Credit Market
- NTT sold 1 trillion yen of bonds in record for Japan’s market
- Deal adds to flurry of blockbuster company note sales globally
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Nippon Telegraph & Telephone Corp. priced 1 trillion yen ($9.6 billion) of bonds Friday in the biggest-ever local debt deal by a Japanese company, a victory for borrowers and investors who have long argued that the nation’s credit market is ready to play a bigger role.
Demand for the deal was strong, as money managers leapt at yields that were higher than many recent deals. The telecom giant had earlier increased its target size from 500 billion yen on brisk investor interest. And even after that, it still received about 2.4 trillion yen of total orders, according to SMBC Nikko Securities Inc., one of the underwriters.