SBI Adds to Record Samurai Loan Boom With ¥30 Billion Debt Plan

The State Bank of India (SBI) has contributed to the ongoing Samurai loan boom by announcing a debt plan worth ¥30 billion ($225 million). This move further fuels the growth of the Japanese bond market, which has witnessed a resurgence in issuance from Asian borrowers, particularly sovereigns and higher-rated corporates. The SBI's planned issuance comes amidst a surge in Samurai bond issuance, with the market seeing a record-breaking ¥4.99 billion in 2019, surpassing the previous high of ¥3.91 billion in 2018.



The Samurai bond market has experienced a remarkable comeback, driven by Asian issuers seeking to capitalize on favorable market conditions and supportive government policies. The market has witnessed a significant increase in issuance from sovereigns and higher-rated corporates, with the total market size reaching ¥4.99 billion in 2019. This growth can be attributed to several factors, including the Japanese government's efforts to promote Samurai bonds, the increasing demand for yen-denominated debt, and the favorable interest rate environment.

The SBI's planned issuance of ¥30 billion is expected to further boost the Samurai bond market, as investors continue to seek exposure to the Japanese bond market. The rise in Samurai bond issuance reflects the growing interest in the Japanese bond market, driven by factors such as supportive government policies, favorable interest rates, and the increasing demand for yen-denominated debt.

The Samurai bond market's comeback is a positive sign for Asian borrowers, who can now access a wider range of financing options. However, the market remains bifurcated, with bond issuance outpacing loans. This trend reflects investor fatigue in the loan market, particularly for lower-rated corporates, and the increasing preference for higher-rated and sovereign issuers in the bond market.

The SBI's planned issuance of ¥30 billion is a testament to the growing demand for Samurai bonds and the favorable market conditions for Asian borrowers. As the market continues to grow, investors can expect to see more issuance from sovereigns and higher-rated corporates, further fueling the Samurai bond boom.