Toyota Finance Sets ¥100 Billion Bond at Highest Yen Coupons Since 1999

2 articles · Updated · Bloomberg · May 22

Toyota Finance priced ¥100 billion of yen bonds, with its five-year coupon rising to 2.287%—the company’s highest on yen debt since its 1999 market debut.
Rising Japanese government bond yields pushed up funding costs across the sale, lifting coupons to 1.654% for two-year notes and 1.876% for three-year debt.
The offering was split into ¥42 billion of two-year notes, ¥16.5 billion of three-year bonds and ¥41.5 billion of five-year bonds, according to lead manager Daiwa Securities.
The deal underscores how higher domestic yields are making even top-tier Japanese corporate borrowers pay materially more to raise long-term funding.

With its own borrowing costs soaring, how can Toyota still offer 0% APR deals to new car buyers?

As Japanese investors pull back from global markets, will this cause the next surge in U.S. interest rates?