European banks lift Samurai bond sales to record levels

Tokyo

EUROPEAN lenders have lifted Samurai bond sales to an annual record, taking advantage of Japan's record low borrowing costs to broaden funding sources.

Yen debt sales by the banks have soared 57 per cent this year to 1.16 trillion yen (S$12.8 billion), helping drive total Samurai offerings to 2.4 trillion yen. France's Credit Agricole SA and Germany's Deutsche Bank AG priced two of 2014's largest deals in November. The Netherlands' Rabobank Group, the biggest seller of notes over the previous three years, is planning the first ever Basel III-compliant Samurai offering.

European Central Bank (ECB) president Mario Draghi is pressuring lenders to bolster their balance sheets after stress tests found a 25 billion euro (S$40.7 billion) funding shortfall in the region's banks. Japanese investors hunting for yield after the Bank of J…