KDDI looking to appoint three banks for JPY60bn bonds sale

22 Feb 2010

Japan’s KDDI Corp has apparently hired three banks to help it sell a minimum JPY60 billion (USD654 million) worth of bonds, Bloomberg reports citing an unnamed banker involved in the deal. It is understood Mitsubishi UFJ Securities Co and Mizuho Securities Co will assist KDDI in its plan to offload a minimum JPY30 billion in five-year bonds priced to realise a premium of between 0.19 and 0.20 of a percentage point more than similar-maturity Japanese government bonds, said the unconfirmed report. Meanwhile Mizuho and Daiwa Securities Capital Markets Co has been selected to help KDDI sell at least JPY10 billion in seven-year bonds set to yield between 0.23 and 0.24 of a percentage point, and at least JPY20 billion in ten-year bonds at a spread of 0.25-0.26 of a percentage point. Further, the banker quoted by the paper said the total value of the sale could rise to more than JPY100 billion. For its part, KDDI said merely it is ‘considering a bond sale’ but declined to elaborate.

The news comes as Liberty Global Inc confirmed the completion of the sale of its 37.8% holding in Jupiter Telecommunications to KDDI Corp. The new owner plans to keep 31.1% of Jupiter and put 6.7% in a trust bank following the examination of the deal’s legality resulted in an offer by Japan’s financial regulator.

Japan, KDDI (au)