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NTT plans record $4.7bn bond float to fund Docomo takeover

Nov 14 (Nikkei) - Nippon Telegraph and Telephone will issue more than 500 billion yen ($4.74 billion) in corporate bonds, a record for a single float in the Japanese market, to raise cash for its 4.25 trillion yen tender offer for subsidiary NTT Docomo.

The telecommunications company may still add hundreds of billions of yen to the offering, depending on demand from institutional investors. An overseas float also is being considered, as the parent may be unable to raise all the capital it needs from Japan's relatively small bond market. The overall total raised could top 1 trillion yen.

The domestic offering will be split into four tranches, with maturities ranging from three to 10 years. The coupon is expected to be around 0.4%, based on NTT's credit rating of AA- from S&P Global Ratings -- the agency's highest score for a Japanese company -- along with the market environment and the size of the float.

NTT could look to issue dollar-denominated bonds in the more liquid U.S. market. Though the company likely would need to pay a higher interest rate there, the move would diversify its funding sources.

Strong demand is expected from investors chasing higher yields as loose monetary policy holds down interest rates. The Bank of Japan has expanded its purchases of corporate debt to help businesses access capital.

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A special session of the Diet convened on October 21st, where Liberal Democratic Party (LDP) president Takeuchi is expected to be chosen as Japan’s next prime minister in the afternoon’s leadership vote. Following a coalition agreement reached on October 20th between the LDP and Nippon Ishin no Kai, Takeuchi’s appointment is now virtually certain, paving the way for her to become the first woman in Japan’s constitutional history to lead the government.

Typhoon No. 24 (Fung-shen) is strengthening over the South China Sea and is expected to make landfall in Vietnam later this week, according to forecasts. Satellite images on October 201st show extensive cloud coverage over the central South China Sea. After passing over the Philippines, Fung-shen temporarily weakened but is projected to intensify again as it continues westward through Tuesday.

Kyoto’s world-famous Arashiyama district, a popular destination for both domestic and international tourists, is facing a growing problem of graffiti etched into the bamboo along its iconic “Bamboo Grove Path,” with more than 350 stalks now damaged — a practice that experts warn could eventually cause bamboo to weaken, fall, and even injure visitors.

Japan’s streaming industry is under growing pressure as foreign giants tighten their grip on the domestic market, with Netflix’s latest move to secure exclusive broadcast rights in Japan for every game of the World Baseball Classic next March highlighting the widening gap.

Investigators from the Immigration Services Agency conducted on-site inspections in Osaka on October 14th amid a surge in so-called 'paper companies' created by foreign nationals seeking residency.

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The relocation of Arimasu Tobiru, a distinctive architectural landmark on Hijirizaka in Tokyo’s Minato Ward, was carried out between August and October after nearly two decades of construction.

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