Mitsui Sumitomo Insurance Co. Ltd. is set to issue ¥130 billion of domestic subordinated unsecured bonds.
The MS&AD Insurance Group Holdings Inc. unit will issue the 60-year bonds in two tranches worth ¥50 billion and ¥80 billion, with early redemption options of five years and 10 years, respectively.
The interest rate for the ¥50 billion tranche is 0.85% for the initial five-year period, while the ¥80 billion tranche will bear a rate of 1.17% for the initial 10-year period. The issue price is ¥100 per amount of ¥100 of each bond, the insurer said.
The insurer said the bonds will be offered mainly to institutional investors in the domestic securities market. Funds raised from the issue will be used for long-term investment funds, repayment of borrowings and bonds and for working capital.
Daiwa Securities Co. Ltd., Nomura Securities Co. Ltd., SMBC Nikko Securities Inc., Merrill Lynch Japan Securities Co. Ltd., Citigroup Global, Markets Japan Inc. and JPMorgan Securities Japan Co. Ltd. acted as joint lead underwriters for the issuance. Mitsubishi UFJ Morgan Stanley Securities Co. Ltd., Mizuho Securities Co. Ltd. and Tokai Tokyo Securities Co. Ltd. acted as underwriters for the issue.
As of Dec. 4, US$1 was equivalent to ¥112.82.
