Berkshire plans first Japan bond offering since April
The U.S. giant mandated Mizuho Securities and BofA Securities for a potential benchmark yen bond offering that's expected in the near future.
Berkshire Hathaway is set to launch its first Japanese yen bond issuance in over a year as it seeks to raise additional capital in the country. The company has engaged the services of Mizuho Securities and BofA Securities to facilitate a potential benchmark yen bond sale, pending favorable market conditions, according to sources with knowledge of the matter.
Berkshire Hathaway has been actively issuing yen-denominated bonds at a rate of twice annually. The forthcoming offering would mark the second such issuance by the company since Warren Buffett relinquished the role of chief executive officer. Investors will closely scrutinize the amount of premium the company offers and the extent of demand generated for the securities.
In April, Berkshire Hathaway sold six tranches of bonds with maturities spanning from three to 30 years, amounting to a total of ¥272.3 billion ($1.7 billion), which was one of its largest yen bond issuances, trailing its debut offering in 2019 and the October 2024 sale. Takashi Fujiwara, lead fund manager in the fixed-income investment department at Resona Asset Management, noted that Berkshire Hathaway enjoys name recognition in Japan due to its investments in Japanese stocks, and there could be demand for the bonds contingent on the spread.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
