Warren Buffett May Expand Investment in Japan... Preparing to Issue Yen Bonds

Investment company Berkshire Hathaway, led by 'investment master' Warren Buffett, is rumored to be expanding its investments in the Japanese market. Berkshire Hathaway has issued yen-denominated bonds to raise funds.

On the 9th, Bloomberg and Nihon Keizai Shimbun reported that Berkshire Hathaway is preparing to issue yen bonds.

Warren Buffett, Chairman and CEO of Berkshire Hathaway, USA [Image source=Yonhap News]

The underwriters designated are Bank of America (BoA) and Mizuho Securities USA. They plan to consider issuing the bonds in the near future depending on market conditions.

This marks the first time a major non-financial overseas bond issuer has started yen transactions since the Bank of Japan (BOJ) lifted its negative interest rate policy after eight years last month.

Berkshire Hathaway previously issued five types of yen bonds totaling 122 billion yen (approximately 1.0886 trillion KRW) in November last year. In April last year, it also issued yen bonds worth 164.4 billion yen (approximately 1.467 trillion KRW).

Berkshire Hathaway has been issuing yen bonds annually since 2019, and the market speculates that the yen raised through these issuances has been invested in Japanese general trading companies' stocks. Warren Buffett, chairman of Berkshire Hathaway, stated in his annual letter to investors at the end of February that Japanese trading companies are following investor-friendly policies. This has led to expectations that Berkshire Hathaway may further increase its stakes in Japanese general trading companies. Berkshire Hathaway holds approximately 9% stakes each in Japan's five major general trading companies (Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo).

Kazuma Ogino, senior credit analyst at Nomura Securities, said, "Berkshire Hathaway has previously issued large amounts exceeding 100 billion yen, which shows its success in attracting a diverse range of investors."