Mixed response to Samurai Loans

摘要

Commodity traders MERCURIA ENERGY CROUP and OLAM INTERNATIONAL have both increased their respective Samurai loans, overcoming a sluggish Ninja loan market by offering higher pricing than on previous deals. Mercuria Asia Croup Holdings, the Singapore-based subsidiary of Swiss energy trader Mercuria, has completed an increased ¥55.5bn (US$524m) three-year Samurai loan, while Singapore-headquartered food and agri-business Olam closed a larger M38.85bn facility in August. Samurai loans are financings for overseas borrowers in Japan's domestic yen market. The Mercuria loan, which was increased from the original target of ¥35bn, attracted 20 lenders in general syndication, while Olam, upped from ¥25bn, brought in a dozen banks. Both borrowers attracted support in the market by offering a pricing premium compared to their previous loans, as liquidity has dwindled. Banks have become increasingly risk-averse and selective amid mounting market uncertainty due to the coronavirus pandemic. "We are not actively chasing cross-border deals because of the coronavirus pandemic, particularly the ones that have no Japanese flavour," a source at a Japanese regional bank said.