Berkshire issues 1.7 billion USD in yen bonds, marking the first time since Buffett stepped down as CEO.

```

Berkshire Hathaway issued about 272.3 billion yen, equivalent to around 1.7 billion USD, of yen-denominated bonds in Japan. This marks the company’s first return to the yen bond market since Buffett stepped down as CEO.

According to Bloomberg, the issuance is divided into six different maturities, covering terms from 3 to 30 years, making it the third largest yen bond issuance in Berkshire’s history.

The transaction was completed as volatility increased in the Japanese government bond market amid tensions in Iran, but Berkshire’s brand effect still provided effective support for the issuance.

Meanwhile, Berkshire recently announced it will invest about 300 billion yen in insurance company Tokio Marine Holdings, further deepening its presence in Japan and demonstrating continuity in strategic direction after the leadership transition.

Pricing Higher Than Similar Issuers, Market Volatility Leaves Its Mark

The 10-year note was priced at a spread of 90 basis points above the benchmark rate, with a coupon of 3.084%, higher than Berkshire’s 10-year note issued in November 2024, which had a coupon of 2.422%.

Reports indicate that the 10-year spread was about 85 basis points during initial discussions on April 3, then widened to 85–90 basis points on April 7, and was further narrowed to 88–90 basis points on April 8.

The final pricing reflects the additional risk premium investors require in the current market environment.

Notably, due to volatility in the Japanese government bond market, the pricing yield for Berkshire’s 10-year notes is even higher than issuers of similar maturity yen bonds with lower credit ratings, such as Crédit Agricole and the Republic of Poland this year.

Brand Premium Supports Issuance, Investors Still Participate Actively

Despite a complex market environment, the issuance still attracted active participation from investors.

Shunsuke Oshida, Managing Director at Manulife Investment Management (Japan), said:

"In this market environment, less well-known issuers may have difficulty accessing the market. Issuers with a good track record and substantial connections to the Japanese market can provide investors with reassurance and make participation easier."

Berkshire has been deeply involved in the Japanese market for years, with holdings including major trading companies such as Mitsubishi Corporation and Itochu Corporation.

As of April 9, Berkshire’s insurance subsidiary National Indemnity Company’s portfolio in Japan had a total market value of about 7.1 trillion yen (excluding Tokio Marine Holdings).

Issuance Scale Ranks Third in History, Yen Bond Strategy Continues

Historically, Berkshire first entered the yen bond market in 2019 with an issuance of 430 billion yen, setting a record; the October 2024 issuance totaled 281.8 billion yen, ranking second.

This latest issuance of 272.3 billion yen ranks among the top three largest yen bond issuances in the company’s history.

The frequent and sizeable yen bond issuances echo Berkshire's ongoing strategy to increase equity investments in Japan. This marks the company’s first yen bond transaction since Buffett stepped down as CEO, and signals to the market that its Japan strategy remains uninterrupted by leadership changes.

Risk Disclosure and DisclaimerThe market has risks and investment requires caution. This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial situation or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article suit their particular circumstances. Investments made accordingly are at the user's own risk. ```