U.S. investment firm Berkshire Hathaway sold ¥210.1 billion ($1.4 billion) worth of yen-denominated bonds on Friday at spreads lower than its previous deal, as global investors flock to Japan. The offering, consisting of four tranches with maturities from three to 15 years, exceeded the ¥90 billion raised in April.
The Omaha, Nebraska-based Berkshire Hathaway has been a regular issuer of yen bonds since its debut six years ago, becoming the largest foreign issuer of yen notes in that period. Friday's sale consisted of four tranches of SEC-registered, senior, unsecured bonds with maturities ranging from three to 15 years. The three-year notes, the largest portion, were priced at a spread of 48 basis points over TONA-based yen mid-swaps, down from 70 basis points in the previous offering. The five-year tenor was priced at about 64 basis points, also lower than before.
The April prior deal, amid heightened uncertainty from U.S. trade tensions, was the smallest yen issuance by Warren Buffett's firm since it first tapped the market in 2019, raising ¥90 billion. This latest ¥210.1 billion ($1.4 billion) sale surpasses that, reflecting global investors' rush to Japan.