RBC to tap Samurai market amid optimism after Liberal party victory

Tokyo

ROYAL Bank of Canada is planning to sell its first Samurai bond since the global credit crisis as the highly-rated lender taps Japanese demand for yield amid optimism that Justin Trudeau's election win will help lift Canadian economic growth.

RBC, which is rated one level higher than the Japanese government by Standard & Poor's, is marketing a 10-year security that is set to pay more than double the yield on local government debt. Smaller competitor Bank of Nova Scotia, which is also based in Toronto, sold 47.2 billion yen (S$548 million) in yen-denominated bond earlier this month, in its first offering on the Tokyo Stock Exchange's Pro-Bond market.