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BONDS: Hitachi Capital (HK) issues first HK-dollar Shogun


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Asia
Major leasing company Hitachi Capital (Hong Kong) today issued the first Hong Kong-dollar Shogun bond. The borrower, a major leasing companies in Hong Kong, established as a subsidiary of Hitachi Capital Corp (a member of Hitachi Group), issued HK$300m (US$38.5m) of four-year Shogun bonds at 1.38%.
Assuming mid swaps today, the pricing is equivalent to around 83bp over Hibor.
This is a Hong Kong company’s first such issue and first Hong Kong-dollar bonds sold in Japan. A Shogun bond is a foreign-currency paper issue of a foreign entity in Japan.
The purpose of the Hong Kong-dollar bond sale in Japan is to diversify the firm’s sources of funding. ....

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