Deutsche Bank AG sells Japanese bonds

13 September 2007

Germany's biggest bank, Deutsche Bank AG, has sold $1.3 billion of yen-denominated bonds.

The 'samurais' are marketed in Japan by foreign entities and the sale is the largest since the US sub-prime market problems have affected the global markets.

According to Bloomberg the interest which the bank pays on the yen bonds is under half what they would be charged on euro bonds.

Jun Ishida, a fund manager in Tokyo at Societe General Asset Management Co, told Bloomberg: "Deutsche Bank tried to take advantage of a good appetite from Japanese investors and cheap funding costs. Japanese investors have suffered much less than overseas investors from the sub-prime turmoil. They're eager to buy bonds, especially those with wider spreads."

The German bank also priced $496 million of five year bonds to yield 45 basis points more than the yen swap rate.

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