The Japan Bank for International Cooperation signed a set of agreements to provide a guarantee for the first yen-denominated foreign bonds issued by Qatar Petroleum in the Japanese bond market.
JBIC’s guarantee will cover the principal and part of the interest of the privately placed Samurai Bonds totaling 85 billion yen. The joint lead arrangers of this issue are Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.; Daiwa Securities Co., Ltd.; Mizuho Securities Co., Ltd.; Nomura Securities Co., Ltd; and SMBC Nikko Securities Inc.; with Sumitomo Mitsui Banking Corporation serving as the bond administrator.
The guarantee, which is provided under the Guarantee and Acquisition toward Tokyo market Enhancement facility, is part of the efforts to maintain and improve the international competitiveness of the Japanese capital market. Support for issuing Samurai Bonds by foreign issuers in the Tokyo bond market with JBIC guarantee will broaden the range of investment opportunities for Japanese investors, thereby contributing to the stimulation of activities in the Samurai Bond market.
The State of Qatar has the world’s third largest natural gas reserves, and it is an especially important energy resource supplier for Japan as it announced that it would supply Japan with an additional 4 million tons of liquefied natural gas in April 2011, in the immediate aftermath of the Great East Japan Earthquake.
QP is a public corporation established in Qatar, having responsibilities for all the stages of the country’s oil and gas sector, including exploration, production and sales.It is thus an important corporation for the State of Qatar.
Since this is the first issue of Samurai Bonds by QP, the guarantee provided by JBIC will contribute to QP’s ability to diversify its funding sources.
Given Qatar’s importance as an energy resource supplier for Japan, JBIC expects that the issuance of Samurai Bonds will lead to a further strengthening of Japan’s relationship with Qatar.
LNG World News Staff, September 04, 2012