Berkshire Hathaway, led by Warren Buffett (Trades, Portfolio), has priced a 90 billion yen (approximately $626.7 million) issuance of yen-denominated bonds. This is the smallest yen-denominated bond issuance by the conglomerate, with maturities ranging from three to thirty years. The yield premiums on these bonds are higher than those from the company's previous issuance in October, with the three-year bond offering a 70 basis point premium, up from 49 basis points.
In 2019, Berkshire issued 430 billion yen in bonds, and in 2024, it issued a total of 545.1 billion yen in two rounds. This latest issuance is significantly smaller than the 281.8 billion yen issued in October 2024. The issuance comes during a period of global financial market volatility, with investors cautious about market conditions despite the high premiums offered.
The funds raised may be used to increase Berkshire's holdings in Japanese companies. In March, Berkshire increased its stakes in Japan's five major trading houses, raising its ownership by over one percentage point to between 8.5% and 9.8%.
Analysts suggest that using yen-denominated bonds for financing is a strategic move by Buffett to deepen investments in Japanese industries. The bond issuance size may indicate his commitment to expanding these holdings.
