J.P. Morgan & Co. entered the Japanese domestic bond underwriting business this week when it became a joint lead manager for Mitsubishi Estate Co.'s 20-year domestic straight bond issue for $82.5 million.
J.P. Morgan Securities Asia Ltd. and Tokyo-Mitsubishi Securities Co. have been named joint lead managers for the issue.
"The reason for J.P. Morgan's entry into the domestic bond underwriting business," a bank official said, "lies in the growing recognition of its credit business in Japan, for which a domestic bond business serves as a base."
Kenichi Noguchi, who heads Morgan's capital markets unit in Japan, said the move into the yen bond business also coincides with client needs.
The Mitsubishi Estate notes, due Sept. 26, 2016, carry a 3.125% coupon and are priced at 100% to yield 3.125%. The notes received an AA-plus rating from the Japan Bond Research Institute and A-plus from Standard & Poor's.