TITAN Financial

2021-04-08 10:58:51 Buffett's Berkshire taps yen debt with $ 1.5 Billion Offering.

Berkshire Hathaway Inc. Warren Buffett evaluated the yen-denominated bonds as yen yields fell to their lowest in more than two years, resulting in Berkshire Hathaway selling $ 1.5 billion of bonds. Average spreads on local Japanese corporate bonds fell to about 29 basis points, the lowest since December 2018, after the Bank of Japan adjusted its monetary policy. The offer allows Japanese investors to buy shares of a well-known international firm while receiving slightly higher returns than are usually offered on the local market, as reported Bloomberg.

As part of the deal, Berkshire Hathaway valued the 10-year bonds at 80 billion yen with a 0.437% coupon, compared with about 0.1% on Japanese government debt of the same maturity. The deal also included 5-year and 20-year bonds with expected ratings from Moody's Investors Service and S&P Global Ratings higher than the ratings assigned to Japan's sovereign debt by these firms.

via. TITAN Open / Comment