Japanese Companies Issue Record ¥1 Trillion in Convertible Bonds as Rising Rates Lift Appeal
Updated
Updated · Bloomberg · Jul 2
Japanese Companies Issue Record ¥1 Trillion in Convertible Bonds as Rising Rates Lift Appeal
3 articles · Updated · Bloomberg · Jul 2
Summary
¥1 trillion in convertible bonds was sold by Japanese companies in the first half, the highest first-half total since 2004.
Rising interest rates are driving the shift because convertibles let issuers pay lower coupons while offering investors upside if share prices climb.
Nippon Steel led the surge with a ¥600 billion sale—the biggest Japanese convertible bond issue on record—while JX Advanced Metals added a ¥250 billion deal.
The rebound shows debt-equity hybrids regaining favor in Japan as companies seek cheaper funding in a higher-rate environment.