Berkshire plans first Japan bond offering since April

Berkshire Hathaway has hired banks for its first yen bond sale since April as it prepares to raise more funds in Japan.

Berkshire mandated Mizuho Securities and BofA Securities for a potential benchmark yen bond offering that’s expected in the near future, subject to market conditions, according to people familiar with the matter.

The company has been issuing yen-denominated bonds at a pace of twice a year. The latest offering would come as Japanese firms have slowed domestic bond sales. New issuance has recently thinned after a surge of supply in October widened the additional yield, or spread, that domestic corporate bonds offer over government debt.

This will be Berkshire’s second yen bond offering since Warren Buffett stepped down as chief executive officer. Investors will focus on how much of a premium the company offers and how much demand it attracts. In April, it sold six tranches with maturities ranging from three to 30 years, totaling ¥272.3 billion ($1.7 billion). That was among its largest yen bond offerings, behind its debut issuance in 2019 and its October 2024 sale.

“Berkshire has name recognition in Japan because of its investments in Japanese stocks,” said Takashi Fujiwara, lead fund manager in the fixed-income investment department at Resona Asset Management. “There should be demand for the bonds depending on the spread.”