South Korea is poised to price its first yen bond in Japan in a move that highlights warming relations between two neighbors whose relations are scarred by history.
The sovereign, whose international credit ratings are higher than Japan’s, is set to sell Samurai notes on Thursday at some of the tightest spreads of any issuer in the market in recent years, according to data compiled by Bloomberg.
Korean issuers are no strangers to the Samurai market, but bond sales have tended to wax and wane depending on political relations between the nations. The government’s offering follows efforts by President Yoon Suk Yeol to revamp ties with Japan since he took office last year after relations under his predecessor turned frosty and disputes surrounding Japan’s colonial rule of the Korean peninsula flared.
The latest steps toward reconciliation resulted in the first formal summit in March in Tokyo between the leaders of both countries in 12 years, and the reinstatement of South Korea as one of Japan’s preferred trading partners. In June, the countries also agreed to restore a foreign currency swap arrangement worth as much as $10 billion.
Japan’s local debt market is also luring offerings from issuers outside the country after interest rates for dollar and euro bonds jumped. The importance of diversifying funding sources also took on more importance during periods in which the primary markets in the US and Europe dried up.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
U.S. says North Korea will ‘pay a price’ for any weapons supplies to Russia‘We will continue to call on North Korea to abide by its public commitments not to supply weapons to Russia,’ Jake Sullivan says
Read more »
South Korea's Yoon to push for stronger response to North Korea at ASEANSEOUL (Reuters) - South Korean President Yoon Suk Yeol will push for a stronger response to North Korea's missile and nuclear programmes at summit ...
Read more »
South Korea's Yoon to push for stronger response to North Korea at ASEANSEOUL (Reuters) - South Korean President Yoon Suk Yeol will push for a stronger response to North Korea's missile and nuclear programmes at summit ...
Read more »
South Korea's Yoon says any attempt to cooperate militarily with North Korea must stopSEOUL (Reuters) - South Korean President Yoon Suk Yeol said on Wednesday any attempt to cooperate with North Korea on military affairs in a way that ...
Read more »
South Korea's Yoon says any attempt to cooperate militarily with North Korea must stopSEOUL (Reuters) - South Korean President Yoon Suk Yeol said on Wednesday any attempt to cooperate with North Korea on military affairs in a way that ...
Read more »
Why Avalanche might be set for another price slumpOn 4 September, the Open Interest rose slightly while the price dropped from $10 to $9.7. This showed short selling, and signaled short-term bearish sentiment.
Read more »