JOGMEC nails sub-Libor rates amid excess liquidity

摘要

A heavy oversubscription on a ¥41.241bn (US$352m) one-year bullet term for state-owned energy company Japan oil gas & metals national corp despite low pricing shows liquid Japanese banks' hunger to lend to top corporate loans. The interest rate for each lender was set by an auction, which gave an average bid of just under 3bp and a highest bid of 9bp on the fixed-rate one-year bullet term loan. JOGMEC's loan is fixed rate and with an average bid of just under 3bp, pays substantially less than Japanese yen Libor, which is 10.4bp for three months, 14.1bp for six months and 26bp for one year. Japanese regional banks, which traditionally invest in Japanese Government Bonds, are the main lenders to JOGMEC's government-guaranteed loan, which received bids totalling ¥161.5bn and was about four times subscribed.