Table 4-1 indicates the conditions of issue for public market offering Local Government Bonds (10-year bonds and 5-year bonds) for each month from May 2006 to the end of January 2007.
Please refer to Table 4-1, item 1 (Hokkaido). Starting from the left, the 2006 figures for May, June, July, etc. through to January 2007 are shown. For May, interest rate for 5-year bonds only was 1.4%, issuing price was 99.55 yen, and subscriber's yield was 1.496%. For June, interest rate for 10-year bonds only was 2.00%, issuing price was 99.90 yen, and subscriber's yield was 2.012%. For October, interest rate for 10-year bonds only was 2.00%, issuing price was 99.40 yen, and subscriber's yield was 2.072%.
Please next refer to item 16 (Osaka Prefecture). In the same fashion, for May the 10-year bond interest rate was 2.00%, issuing price was 99.85 yen, and subscriber's yield was 2.018%, whereas the 5-year bond interest rate was 1.40%, issuing price was 99.55 yen, and subscriber's yield was 1.496%. For June, the 10-year bond interest rate only was 2.00%, issuing price was 99.90 yen, and subscriber's yield was 2.012%. For October, the 10-year bond interest rate was 1.90%, issuing price was 99.21 yen, and subscriber's yield was 1.994%, and the 5-year bond interest rate was 1.40%, issuing price was 99.58 yen, and subscriber's yield was 1.490%.
In May, items 8 (Tokyo), 9 (Kanagawa Prefecture), 29 (City of Yokohama),
and 31 (City of Nagoya) on Table 4-1 were conducting respective individual
negotiations. However, apart from these, for issuing groups, such as items
6 (Saitama Prefecture), 7 (Chiba), 13 (Shizuoka Prefecture), 14 (Aichi
Prefecture), 16 (Osaka Prefecture), 17 (Hyogo Prefecture), and for 5-year
bonds items 1 (Hokkaido), 16 (Osaka Prefecture), 17 (Hyogo Prefecture)
,24 (City of Sapporo), 28 (City of Kawasaki), 33 (City of Osaka), 35 (City
of Kobe), the terms and conditions of issue were all identical.
This was a result of the issuing groups amalgamating in order to conduct negotiations with syndicates over the terms and conditions of issue.
However, from September, the format for negotiation over terms and conditions changed, and looking at the bonds issued for October, it can be seen that for both 10-year and 5-year bonds, terms and conditions such as interest rate, issuing price, and subscriber's yield were all different for each issuing group. Since this is a result of the shift to individual negotiations, where terms and conditions necessarily varied, this difference reflects the various financial circumstances and so on between each group. |
