Warren Buffett’s Berkshire Hathaway is preparing to issue yen-denominated bonds, raising expectations of increased investments in Japanese equities.
Several media outlets report that Berkshire has appointed BofA Securities and Mizuho Securities as lead managers for the bond issuance. The exact size and timing of the deal are yet to be finalized.
Berkshire has been a regular issuer of yen bonds since 2019. Last year, it raised a record $3.69 billion through yen-denominated debt, exceeding its initial $2.91 billion issuance in 2019.
Analysts expect the proceeds to fund further investments in Japanese stocks. Back in August 2020, Berkshire disclosed that it had acquired stakes of more than 5% in each of Japan’s five major trading houses-and it’s been steadily increasing those positions since.
A regulatory filing submitted to the Kanto Local Finance Bureau on March 17 showed that Berkshire’s holdings in all five firms had grown by more than one percentage point compared to June 2023.
Its stake in Mitsui rose from 8.09% to 9.82%, Mitsubishi from 8.31% to 9.67%, Marubeni from 8.3% to 9.3%, Sumitomo from 8.23% to 9.29%, and Itochu from 7.47% to 8.53%.
In his annual letter to shareholders last month, Buffett said the company may further increase its holdings in the five trading firms. He also noted that Berkshire had reached an agreement allowing it to go slightly above the previous “under 10%” ownership cap.
