Wal-Mart to launch 60 bln yen samurai bonds next month - report

TOKYO, Jul 09, 2008 (Thomson Financial via COMTEX) -- WMT | Quote | Chart | News | PowerRating -- Retail giant Wal-Mart Stores Inc plans to float around 60 billion yen ($558.3 million) in samurai bonds in Japan as soon as early August, the Nikkei reported on Wednesday without citing sources.

This is the first issuance of yen-denominated debt by a foreign retailer in almost 30 years, the business daily said.

Mitsubishi UFJ Securities Co, Mizuho Securities Co and Nikko Citigroup Ltd will lead manage the offering.

Amid the drawn-out global market turmoil, Japan's capital markets are more stable than those in Europe and the U.S., allowing the U.S. retailer to raise funds at relatively low funding rates.

The funds will likely be devoted to bolstering the operations of supermarket chain operator Seiyu Ltd, which Wal-Mart brought under its umbrella in April.

Seiyu plans to renovate 90 locations over two years or so, spending an estimated 30 billion yen plus, the report said.

yasuhiko.seki@thomsonreuters.com

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