SYDNEY, Feb 11 (Reuters) - National Australia Bank,
the country's largest lender, has postponed a Samurai bond issue
because of a jump in currency costs, a market source said on
Wednesday.
The bank had mandated Mizuho, Nikko Citigroup and Nomura Securities to lead manage an issue backed by the Australian government, according to the source.
The postponment of the offer follows a sharp rise in the cross currency swap margin between yen and U.S. dollars, making a yen issue a lot costlier for foreign issuers who need the proceeds in a different currency.
It now costs 25 to 30 basis points more to swap yen proceeds into U.S. dollars since Westpac Banking Group, Australia's second largest lender, raised one of the largest Samurai offer ever, the source said.
On Feb. 2, Westpac sold 201.3 billion yen ($2.22 billion) of bonds backed by the Australian government. It was followed this week by Australia & New Zealand Banking Group which raised 150 billion yen of Samurai bonds also guaranteed by the government.
($1=90.67 Yen)
(Reporting by Cecile Lefort) Keywords: NAB/BONDS (cecile.lefort@reuters.com; +612-9373-1234; Reuters Messaging: cecile.lefort.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The bank had mandated Mizuho, Nikko Citigroup and Nomura Securities to lead manage an issue backed by the Australian government, according to the source.
The postponment of the offer follows a sharp rise in the cross currency swap margin between yen and U.S. dollars, making a yen issue a lot costlier for foreign issuers who need the proceeds in a different currency.
It now costs 25 to 30 basis points more to swap yen proceeds into U.S. dollars since Westpac Banking Group, Australia's second largest lender, raised one of the largest Samurai offer ever, the source said.
On Feb. 2, Westpac sold 201.3 billion yen ($2.22 billion) of bonds backed by the Australian government. It was followed this week by Australia & New Zealand Banking Group which raised 150 billion yen of Samurai bonds also guaranteed by the government.
($1=90.67 Yen)
(Reporting by Cecile Lefort) Keywords: NAB/BONDS (cecile.lefort@reuters.com; +612-9373-1234; Reuters Messaging: cecile.lefort.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.