Latest news with #SuntoryHoldings
Bloomberg
23-05-2025
- Business
- Bloomberg
Borrowers Rush to Sell Yen Bonds as Rising Yields Lure Investors
Borrowers are finding a silver lining in this week's surge in Japanese bond yields with higher rates attracting credit investors. At least 10 issuers including drinks producers Kirin Holdings Co. and Suntory Holdings Ltd., as well as real estate company Mitsui Fudosan Co. and the Republic of Indonesia rushed to the market Friday. They priced more than ¥530 billion ($3.7 billion) of bonds in total, with maturities of mainly 10 years or less, in one of the busiest days this year.
Straits Times
28-04-2025
- Business
- Straits Times
Revived corporate bond deals in Japan underline need for funding
Fund managers are hunting for deals, especially as they look to put funds to work at the start of the financial year in April. PHOTO: AFP TOKYO – Japanese corporate issuers are rekindling some shelved yen bond deals in a sign of pressing funding needs even as investors seek fatter premiums. Suntory Holdings, one of a slew of firms that canceled or delayed deals in April due to sharp market fluctuations, is considering resuming the sale in May. Another beverage group, Asahi Group Holdings, sold yen bonds on April 25 in an offering that was postponed at the start of the month. Companies paid about 60 basis points more than Japanese sovereign debt on average in April for new issuance, data compiled by Bloomberg showed. That is near the highest since June 2024, highlighting how it has become harder for borrowers and buyers to agree on prices. As well as the pulled deals, borrowers failed to sell out bonds in the usually stable local government debt market. Premiums to sell new bonds have of course risen in global credit markets as well, but volatility is particularly tricky for Japan to navigate given that the market has been less exposed to extreme swings after years of rock-bottom interest rates. It matters right now because there is strong demand for funding from Japanese companies as the economy emerges from years of deflation. 'Many investors are demanding wider spreads as the environment is volatile and there's uncertainty,' said Mr Noritaka Oda, head of debt syndicate at SMBC Nikko Securities, adding that new issuance premiums may rise another five to 10 basis points in the next month or so. Fund managers are hunting for deals, especially as they look to put funds to work at the start of the financial year in April. Issuers are also trying to pinpoint the best time to sell bonds before the Bank of Japan raises interest rates again, and to meet funding needs. SoftBank Group leaned on its individual investor base to raise a record ¥600 billion (S$5.52 billion) from retail bonds earlier this month. Several deals in the Asian dollar bond market were also delayed this month amid unpredictable markets, but those issuers have started to trickle back. In Japan, corporate bond sales have almost doubled over the past decade to a record last fiscal year, raising the stakes in the once relatively calm market. The turmoil stemming from Donald Trump's tariffs is the first major shock since the pandemic, said Mr Masahiro Koide, joint head of the capital markets division at Mizuho Securities. Issuers are testing how much extra they need to pay to attract investors, with average spreads climbing for a third month. They are up from 54 basis points in March, according to the data which includes financial issuance. The widening premiums are more pronounced on some deals. Japan Tobacco sold ¥50 billion of five-year notes at a spread of 38 basis points earlier this month, while similarly rated Sony Group paid a premium of 24 basis points on that tenor in late February. Suntory initially halted its hybrid bond offering because some investors were demanding over 20 basis points more than what it could agree to pay, Mr Yukihiro Iriyama, senior general manager at the finance department at the firm's corporate management and finance division, said in an interview with Bloomberg News. Japanese credit investors are not entirely risk-averse, but are focusing on liquid deals from frequent issuers such as highway companies, said Mizuho's Mr Koide. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Bloomberg
22-04-2025
- Business
- Bloomberg
Suntory Holdings CEO on Tariff Impact
Takeshi Niinami, Chairman and CEO of Suntory Holdings, discusses his outlook on US-Japan tariff negotiations and how Japanese corporates are navigating the business environment amid these talks. He speaks with Shery Ahn on "Bloomberg: The Asia Trade". (Source: Bloomberg)
Gulf Today
08-04-2025
- Business
- Gulf Today
Japan debt agreements affected as tariffs hit deals outlook across Asia
Three Japanese companies have postponed the sale of 100 billion yen ($678.43 million) worth of yen-denominated bonds in the wake of global financial market volatility induced by US tariff announcements, according to a source and the companies. Japan's largest Asahi, was due to issue 50 billion yen ($340 million) this month but shelved the issuance due to market turmoil, a company spokesperson said. Suntory Holdings deferred the issuance of 10 billion yen in subordinated bonds whose pricing was planned for this week, a spokesperson said. Nissin also said it has postponed a planned bond issuance but declined to comment further. The noodle maker was due to issue bonds worth 40 billion yen, according a source familiar with the matter. The three Japanese debt deals were shelved as financial markets grapple with the global fallout from US President Donald Trump's tariffs which investors fear could spark an all-out trade war and a deep recession. Asian stocks bounced on Tuesday off more than one-year lows and US stock futures rose, but investors remained on edge even as they hoped Washington might be willing to negotiate some of the aggressive tariffs that have unleashed turmoil in markets. Since the fresh tariffs were unveiled last week, the yield on benchmark 10-year Japanese government bonds dived as much as 36 basis points to hit a three-month low of 1.125% on Monday, but bounced back to 1.26% in the latest session. Despite the market uncertainty, Warren Buffett's Berkshire Hathaway Inc began marketing a 7-tranche yen denominated bond on Tuesday, according to a term sheet reviewed by Reuters. MARKET VOLATILITY: The market volatility is expected to have an impact on capital raising deals across Asia as investors navigate the risk of tariffs increasing already high geopolitical tensions between the US and China, according to bankers and lawyers that participate in the capital markets. South Korea's Hanwha Aerospace said on Tuesday it would reduce the size of its planned capital raising by one third after it faced investor and regulatory pushback to the plan. In Hong Kong, two initial public offerings are in the middle of book-building with Duality Biotherapeutics aiming to raise up to $200 million and Jiangsu Zenergy Battery Technologies Group aiming for a $130 million deal. As those two transactions are expected to be a test of investors' appetite to buy China-related new share sales, advisors are pessimistic that big ticket deals would launch any time soon as markets remain fractured. The effects of the tariffs on deals is being felt globally , with initial public offering and major corporate buyout activity expected to be on hold in the near term future. 'I think issuers shall remain on the sidelines for now. The clarity that's needed is about an eventual trade agreement between the two economic giants,' said Manishi Raychaudhuri, a former Hong Kong-based equity strategist and now chief executive of Emmer Capital. 'As long as retaliatory counter-punches keep on getting thrown around, it would be very difficult for investors to come to a conclusion about growth projections, cost of capital and fair valuations.' In Southeast Asia, the tariff fallout is being felt in merger and acquisition circles with at least one transaction being put on hold. Navis Capital Partners had hired advisors to explore the potential dual exit either through a direct sale or Hong Kong IPO of Singapore-based container depot operator EKH, or Eng Kong, but the process could be paused in view of the current uncertain global macroeconomic environment triggered by tariffs and trade war, according to two persons with knowledge of the matter. Navis Capital declined to comment and EKH did not respond to a request for comment. The sale could value EKH at more than $200 million, one of the sources added. Japanese investors turned net sellers of overseas bonds in March for the first time in three months, fuelled by a decline in US yields, but they ramped up purchases of foreign equities, aided by retail investment flows. Japanese investors sold 902.7 billion yen ($6.14 billion) in long-term foreign bonds in March, reversing February's net purchases of 3.3 trillion yen, data from the finance ministry showed. They bought a net 2 trillion yen worth of foreign stocks last month, the highest on records, the data showed. Investment trust management firms bought 1.11 trillion yen in foreign stocks, while trust accounts acquired 763.8 billion yen, ending a six-month selling streak. Life insurers continued divesting, offloading 391.4 billion yen in foreign equities for a third consecutive month. Agencies
Yahoo
05-04-2025
- Business
- Yahoo
Suntory Holdings hands China distributor ASC Fine Wines back to family ownership
Japanese drinks major Suntory Holdings is selling Chinese wine importer and distributor ASC Fine Wines back its original owners, the St. Pierre family. Financial terms of the transaction, which is expected to be completed in the coming months, have not been disclosed. Husband and wife Don St. Pierre Jr. and Monica Xu St. Pierre have signed a definitive agreement to re-acquire a 100% stake in the company, ASC said in a statement. Founded in 1996 by Don St. Pierre Jr. and his father, Don St. Pierre Sr., ASC Fine Wines has a distribution portfolio of over 1,200 wine brands from more than 100 wineries worldwide, including labels such as Cakebread Cellars, Alion and Banfi. Its sales network covers mainland China, Macau on the southern coast of the country and Hong Kong. In its own statement, Suntory said in light of "the challenging environment in the Chinese wine market," it had been mulling over "various options for the future of ASC Fine Wines", and had ultimately decided to see ownership return back to the St. Pierre family. Osaka-based Suntory acquired ASC in 2010 after agreeing to take a majority stake from Austria's Wine Holdings in 2009. In its statement, ASC said with the St. Pierre family at the helm, it will 'remain committed to its core strengths' while developing "into a next-generation platform" tailored to adapt to the evolving demands of the Chinese wine market. To achieve this, ASC said it plans to leverage 'cutting-edge technology, direct-to-consumer models, and best-in-class warehouse and logistics partnerships'. Following the transaction, Don St. Pierre Jr. will become executive chairman and CEO, focusing on the group's strategy and operations. He said that 'the evolving Chinese market presents a unique opportunity for us to innovate and provide new ways for wine producers to engage with consumers.' Monica Xu St. Pierre will take on the position of lead director, concentrating on people, culture, and consumer experience. "Our focus will be on strengthening the reach of our existing brands while selectively introducing new ones that complement ASC's growth strategy and the changing needs of the market," Don St. Pierre Jr., said. In the months ahead, the company plans to unveil new partnerships, investments, and plans 'that will further solidify its leadership position in the industry'. "Suntory Holdings hands China distributor ASC Fine Wines back to family ownership" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
