Adds equivalent level in yen
TOKYO, Aug 5 (IFR) - City of Kobe, rated AA+ by JCR, has priced a US dollar bond for the second week in a row, raising US$80m today from a three-year note at 40bp over mid-swaps via Goldman Sachs.
The three-year note priced with a 0.582% coupon at par.
According to a calculation by a banker away from the deal, the 40bp spread is equivalent to yen offer-side swaps minus 5.67bp, or an absolute yield of around -0.06%, which is favourable to the issuer as municipal governments usually pay a positive coupon in the domestic market.
The deal comes after last Friday's US$210m two-part five-year bond offering. Both tranches priced at 50bp over mid-swaps, with one of the two compatible with a foreign clearing house.
(Reporting by Takahiro Okamoto; Editing by David Holland)
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