Berkshire Hathaway Inc. has hired Mizuho Securities and BofA Securities to arrange its first yen-denominated bond sale since April, returning to a market where it has borrowed about twice a year to fund its Japanese investments.
The planned benchmark offering of senior unsecured notes is expected in the near future, subject to market conditions. Berkshire has not disclosed the size, maturities or pricing. The deal would be its second yen sale since Warren Buffett stepped down as chief executive.
A familiar borrower in a quieter market
In April, Berkshire sold 272.3 billion yen, or about $1.7 billion, of bonds in six tranches with maturities from three to 30 years, one of its largest yen offerings after its 2019 debut and an October 2024 sale. Berkshire has used yen debt to help fund, and partly hedge, its stakes in Japan’s big trading houses.
The new deal comes as Japanese companies have pulled back on domestic bond sales. A surge of supply in October pushed out the extra yield that corporate bonds pay over Japanese government debt, and issuance has thinned since. Local fund managers say Berkshire’s name recognition, built on its Japanese stock investments, should draw demand, with the spread it offers the main variable. The sale would also test appetite for large foreign issuers just as Japanese companies such as Mitsui Chemicals line up big acquisition financing at home.
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