Warren Buffett’s Berkshire Hathaway sold 281.8 billion yen ($1.89 billion) worth of multi-tranche bonds in a deal on Thursday, rather than the legendary investor increasing its exposure to Japanese assets. Speculation is increasing.
The firm priced seven bond deals with terms ranging from three to 30 years, Berkshire’s largest yen-denominated deal since its debut sale in 2019. The sale makes Berkshire the largest issuer of foreign yen bonds this year, raising a record 545.1 yen. Billion. All maturities except the three-year tranche offered a higher premium compared to the corresponding April bond issue.
The billionaire’s fundraising efforts in Japan have drawn attention from stock market investors, as Buffett has traditionally used yen funds raised in the bond market to buy stocks in Japanese companies. The Nikkei Stock Average (225 stocks) hit a record high early this year as he increased his stakes in five major trading companies. If Berkshire’s investment options expand to other stocks such as banks, insurance companies and shippers, as some analysts have speculated, it could lead to further gains for the broader Japanese market.
