Warren Buffett’s Berkshire Hathaway Inc has started sounding out investors about the sale of yen bonds, having already established itself in recent years as one of the biggest foreign issuers of debt in the Japanese currency.
Early guidance for pricing of the three-year portion of the debt is around 70 basis points over mid-swaps, according to people familiar with the matter.
Multiple tranches are up for sale, with early guidance for the 30-year maturity at roughly 125 basis points, said the people, who asked not to be identified because the matter is private
The US company is mulling the sale as Kazuo Ueda takes the helm at the Bank of Japan. During his confirmation process, Ueda said monetary easing needs to be in place, bringing greater market focus to if and when he will adjust the bank’s yield curve control program.
While Ueda could still leave everything unchanged for a while, in a sign of traders guarding themselves against potential adjustments, Japan’s 10-year bond yields have climbed up.
Buffett’s Berkshire most recent benchmark yen debt sale took place in December, when it sold 115 billion yen ($867 million) of notes.
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