JAPANESE trading giant Nissho Iwai Corp plans to list a US$1 billion 'Asian dragon medium-term note programme' in what is believed to be the first such deal in the territory.
Nomura International (Hong Kong) said yesterday the medium-term note (MTN) programme would be launched on the Stock Exchange of Hong Kong under the name of Nissho Iwai HK (Cayman), a wholly owned arm of Nissho Iwai Hong Kong Corp.
It said it already had applied to the stock exchange for a listing, with a signing scheduled for Tuesday and a listing set for the next day.
The programme would not carry a guarantee but would have a 'keep well' agreement in which the parent and its Hong Kong arm would ensure the Hong Kong arm stayed in good financial condition so it could service its debt.
Nomura International said: 'This will be the first Asian dragon MTN programme with a keep-well agreement and the first corporate MTN programme to be listed on the Stock Exchange of Hong Kong.' MTN programmes allow holders to raise money by issuing interest-bearing notes to investors.
The notes could be short-term debt or mature in 30 years and be issued in different currencies, for flexible cash management.