Berkshire’s first yen bond since Buffett’s exit prices at a premium, signaling investor demand for stability amid market stress

Berkshire Hathaway’s 10-year yen notes now carry a coupon of 3.084%, up from 2.422% in its last issuance, reflecting higher borrowing costs in Japan just after Warren Buffett stepped down as CEO. The company sold ¥272.3 billion ($1.7 billion) in a six-tranche bond offering with maturities ranging from three to 30 years—its first yen-denominated deal since the leadership transition. The 10-year notes were priced at a spread of 90 basis points over Japanese government bond benchmarks, wider than the 85 basis points initially expected earlier in April. Spreads had widened over the week, moving from 85 basis points on April 3 to a range of 88–90 basis points by April 8. The increased cost of capital comes amid rising volatility in Japanese government bonds, driven by geopolitical tensions involving Iran. Yet demand held firm, underscoring investor confidence in Berkshire’s established presence in Japan. The Omaha-based firm has built stakes in major Japanese trading houses and recently committed ¥300 billion to insurer Tokio Marine Holdings Inc. Analysts note that well-known issuers with demonstrated exposure to Japan are better positioned to attract capital in turbulent conditions. As Shunsuke Oshida of Manulife Investment Management (Japan) Ltd said: “In this kind of environment, lesser-known issuers may find it difficult to come to market. Issuers with a track record and exposure to Japan offer reassurance, making it easier for investors to participate.” This sale marks Berkshire’s third-largest yen bond transaction, behind only its ¥430 billion debut in 2019 and a ¥281.8 billion offering in October 2024.