Buffett increases holdings in Japan: Berkshire Hathaway issues largest yen bond in five years
Berkshire Hathaway, under Buffett's leadership, issued a ¥281.8 billion (approximately $1.9 billion) yen bond, marking the largest bond issuance in five years. This is the company's second yen bond issuance this year, with the funds being used for general corporate purposes to further deepen its ties with the Japanese capital market. Analysts point out that this move lays the foundation for Berkshire Hathaway to increase its exposure to Japanese assets, with the market focusing on its future investment targets
According to the financial news app Zhitong Finance, "Stock God" Buffett's Berkshire Hathaway (BRK.A.US) raised 281.8 billion yen (approximately $1.9 billion) through the issuance of yen-denominated bonds, marking the largest yen-denominated bond issuance by the company in five years. This is also Berkshire Hathaway's second issuance of yen bonds this year, following the issuance of 263.3 billion yen bonds in April.
The issuance of yen bonds this time indicates that Buffett's connection with the Japanese capital market is deepening. According to documents submitted by Berkshire Hathaway, the funds raised from this yen bond issuance will be used for general corporate purposes. Analysts believe that this move lays the foundation for Berkshire Hathaway to increase its exposure to Japanese assets.
Berkshire Hathaway's fundraising plans have attracted close attention from stock market investors, as earlier this year, the company's purchase of shares in Japan's five major trading companies helped push the Nikkei 225 index to a historic high. In February this year, Berkshire Hathaway mentioned in its annual shareholder letter that the issuance of yen bonds provided most of the funds for investing in Japanese companies.
Takehiko Masuzawa, trading manager at Phillip Securities Japan, said, "The scale of Berkshire Hathaway's yen bond issuances this year is the highest since the company started issuing yen bonds, indicating their expectations for the rise in the Japanese stock market." "The market is watching what stocks they will target next. Investors believe that value stocks with higher dividends, such as banks and insurance companies, are the most likely targets."
It is reported that Berkshire Hathaway issued yen bonds with maturities of 3 years, 5 years, 7 years, 10 years, 20 years, 28 years, and 30 years this time. Among them, the issuance size of the 3-year bonds is the largest, reaching 155.4 billion yen; and the issuance size of the 5-year bonds is 58 billion yen