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

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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.

Proceeds of the private placement will be kept in Hong Kong dollars and be used for the issuer’s business expansion, including mortgage loans, as well as for general corporate purposes.

Sumitomo Mitsui Banking Corp will be the fiscal agent.