Japan Tobacco to issue two series of straight bonds

Japan Tobacco (JT) is set to issue two tranches of straight bonds totaling JPY70 billion. The 18th series will amount to JPY50 billion with a five-year term, maturing on April 10, 2030, and carries an interest rate of 1.293% per annum. The denomination per bond is JPY100 million, priced at JPY100 per face value. The 19th series is a JPY20 billion bond with a ten-year term, maturing on April 10, 2035, at an interest rate of 1.781% per annum. Both series will be fully redeemed upon maturity, with JT having the option to repurchase and cancel bonds after the payment date. The offering is public in Japan, secured by a general mortgage under the Japan Tobacco Inc. Act. Mizuho Securities, Mitsubishi UFJ Morgan Stanley Securities, and SMBC Nikko Securities will lead the management of the issuance. The proceeds are earmarked for repaying interest-bearing debt. The bonds are rated AA by Rating and Investment Information, Inc., and AA+ by Japan Credit Rating Agency, Ltd.