Market Chatter: Berkshire Hathaway Explores Yen Bond Sale

MT Newswires Live04-06 08:28

Berkshire Hathaway has initiated discussions with investors regarding a possible multi-tranche yen-denominated bond sale, Bloomberg News reported Friday, citing people familiar with the matter.

The offering could be priced as soon as April 10 and include maturities ranging from three to 30 years, Bloomberg News reported Friday.

This potential debt offering follows closely after the conglomerate announced a roughly 300 billion yen or $1.8 billion investment in Tokio Marine (TYO:8766), the newswire said, citing unnamed sources close to the matter.

The move comes as Berkshire, now led by Greg Abel, continues to expand its footprint in Japan by increasing stakes in major trading firms, including Itochu (TYO:8001), Mitsubishi Corp. (TYO:8058) and Mitsui & Co (TYO:8031), the publication said.

The company previously raised 210.1 billion yen through yen bonds in November, and Mizuho's (TYO:8411) securities arm, along with Bank of America securities, is reportedly set to manage the upcoming deal.

Meanwhile, market volatility driven by geopolitical tensions surrounding Iran has led to fluctuations in Japanese government bond yields, with investors now demanding higher risk premiums, causing the spread on 10-year municipal bonds to widen for the first time in nearly a year, the report added.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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